The Council of the European Union has officially adopted a new regulation establishing a revised framework to protect the EU steel market from the effects of global steel overproduction, ensuring continued trade protection after the current steel protection measures expire on 30 June 2026.
The new regulation is part of the European Commission's Steel and Metals Action Plan and will come into force on 1 July 2026.
The new system introduced tariff rate quotas
The regulation establishes a revised tariff rate quota (TRQ) system aimed at addressing the impact of structural global overcapacity on the European steel market.
Under the new structure:
- steel import quotas will be reduced,
- higher tariffs will apply to imports above quotas
- monitoring of import flows will be strengthened.
The measure is designed to protect the competitiveness of the EU steel sector while maintaining compliance with the bloc's international trade obligations.
Greater flexibility for steel consumers
The new rules also provide additional flexibility for economic operators, allowing unused Quotas are transferred from one quarter to another within one quota year. According to the Board, this mechanism is intended to help ensure an adequate supply of steel to downstream industries while maintaining the effectiveness of the trade measure.
To increase transparency and limit circumvention, the regulation introduces a “melt and pour” requirement, which determines the origin of the steel by the country where the steel was first smelted and poured into its original solid form. This provision is expected to strengthen traceability and reduce the risk of steel products being diverted through third countries to avoid trade restrictions.
A stronger verification mechanism is established
The regulation also creates an enhanced verification mechanism that will allow the European Commission to regularly assess the scope and effectiveness of the measure.
The Commission will be able to propose adjustments where necessary in response to changing market conditions, import trends and events. due to global steel overcapacity.
EU reaffirms commitment to reducing dependence on Russian steel
In
