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Tariffs

EU Unveils New Proposal to Overhaul Steel Import Policy Amid Global Overcapacity

Strategic Insights

— 1 min read

The European Commission has unveiled a new proposal to overhaul the EU's steel import policy, reportedly aimed at addressing global overcapacity and strengthening the resilience of the European steel sector. The proposal, which will replace the EU's current steel safeguard measures set to expire in June 2026, reflects the EU's growing willingness to protect its own steel industry amidst similar measures taken globally. The new policy includes key changes, such as a quota reduction, tariff increase, and traceability requirement, aimed at preventing circumvention of import regulations.

Key Takeaways:

  • The new proposal introduces a quota reduction, capping tariff-free steel imports at 18.3 million tons annually, a 47% reduction from the 2024 quota.
  • Tariff quotas will be allocated per product category based on the share of imports that each product category held in the period 2022-2024.
  • Imports exceeding the quota will face a 50% duty, up from the current 25%.
  • A traceability requirement will be established to report the country of the melt and pour, preventing circumvention of import regulations.
  • The proposed measures will apply to imports of all 26 grades of steel currently subject to EU steel safeguards.
  • The EU maintains that the new policy will uphold open markets by offering quota allocations to trading partners, but the size of the quotas allocated to trading partners has not been publicly disclosed.

Statistics:

  • 18.3 million tons: The annual quota for tariff-free steel imports, a 47% reduction from the 2024 quota.
  • 50%: The increased tariff duty for imports exceeding the quota.
  • 2026: The year in which the current steel safeguard measures expire.
  • 2022-2024: The period during which tariff quotas will be allocated per product category based on import share.
  • 26 Grades: The number of grades of steel currently subject to EU steel safeguards that will be covered by the proposed measures.

Sources:

  • European Commission, "Proposal for a Regulation of the European Parliament and of the Council on safeguard measures for steel imports" (7 October).
  • World Trade Organization, "General Agreement on Tariffs and Trade (GATT)".
  • European Trade Commissioner Maroa 'efčovič, quoted in the article.

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