EU Bolsters Steel Market Defenses

On April 14, 2026, the European Parliament and the Council announced a significant agreement on new regulatory measures aimed at protecting the EU steel industry from the deleterious effects of global steel overcapacity. This political agreement introduces stringent import quotas and heightened customs duties to fortify the EU market against excessive global supply.

Under the newly negotiated terms, import quotas will be sharply reduced, limiting tariff-free steel imports to 18.3 million tonnes annually, marking a 47% decrease from the quotas of 2024. Additionally, a 50% customs duty will be imposed on imports that exceed these quotas and on steel products not covered by the quotas. These measures, which align with World Trade Organization (WTO) rules, are set to replace the current safeguards expiring on June 30, 2026.

The agreement also enhances the traceability of steel imports. Importers will now be required to provide clearer evidence regarding the origin of their steel products. This move is part of a broader strategy to ensure that the EU steel industry remains competitive and capable of sustaining its crucial role in the European economy and defense sector. The industry has faced significant challenges, including around 100,000 job losses since 2008, largely due to global overcapacity and sustained import pressures.

Karin Karlsbro, the lead negotiator for the Parliament, emphasized the importance of these measures, stating, “Combatting the negative trade effects from global overcapacity on the EU steel market is essential. With the agreement, the Parliament, the Council, and the Commission could jointly declare the importance of swiftly phasing out all import of Russian steel products.” This provisional agreement is set for a formal adoption by both the Council and Parliament, with a potential plenary vote in May and an expected enforcement starting July 1, 2026.