Under the new regulation, the volume of duty-free steel imports will be capped at 18.3 million tons per year, representing a 47% reduction compared to the 2024 quota levels. The customs duty rate to be applied in the event of quota overruns will be increased from the current 25% to 50%. In addition, a 50% tariff will also be imposed on steel products outside the quota scope.
The regulation takes into account Ukraine’s candidate country status and security conditions in the allocation of country-specific quotas, while aiming to limit the pressure of global overproduction on the European steel market.
The new rules also strengthen traceability requirements. Accordingly, the origin of steel will be determined based on the “melted and poured” rule, identifying the location where the steel was first produced. This measure is intended to prevent circumvention through limited processing operations in third countries.
The regulation was adopted in line with the agreement reached between Parliament and Council negotiators, with 606 votes in favor, 16 against, and 39 abstentions.
Rapporteur Karin Karlsbro stated that Europe needs fair trade conditions for a competitive steel industry and emphasized the importance of addressing the negative effects caused by global overcapacity. Karlsbro also noted that Ukraine should be granted special consideration under the new regulation in light of the current circumstances.
The EU steel sector has faced significant challenges in recent years due to price pressure and rising imports driven by global overcapacity, with approximately 100,000 jobs reportedly lost since 2008. The new regulation is expected to be an important step toward preserving the sector’s competitiveness.
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