Key facts
- The EU has halved its duty-free steel import quota from non-EU countries.
- Imports from 12 trading partners, including the UK, will face a smaller reduction of one-third.
- The new safeguards are designed to limit the influx of low-cost Chinese steel.
- Tariffs for steel imports exceeding the new quotas will double to 50%.
- The quota allocations for FTA partners are linked to their historic trade levels.
The European Union has significantly reduced its duty-free steel import quota, a move primarily aimed at curbing the influx of cheap Chinese steel into the bloc. However, the EU has offered more favorable terms to 12 trading partners, including the United Kingdom, which have free trade agreements with Brussels.
The new safeguard measures, set to take effect from July 1, 2026, will see an overall reduction of 47% in tariff-free steel imports compared to 2024 levels. For countries outside these preferential agreements, tariffs will double to 50% on imports exceeding the new quotas.
In contrast, the 12 partner countries, which include Turkey, India, South Korea, Indonesia, Egypt, Brazil, Switzerland, North Macedonia, South Africa, Argentina, Ukraine, and Singapore, will experience a smaller reduction of approximately one-third in their duty-free quotas. These nations will be permitted to export between 66% and 67% of their historic trade volumes on average, with allocations adjustable based on supply shortages for specific steel types. The quotas are based on trade data from 2022 to 2024.
EU trade commissioner Maroš Šefčovič stated that the Commission is implementing practical arrangements to ensure the steel measure operates effectively from day one, providing market participants with predictability through clear quota distribution rules. The UK steel industry had previously expressed concerns about the potential "devastating" consequences of the EU's planned quota system. The EU indicated that the system aims to resolve issues for some countries without creating new problems for others.