The European Union is set to significantly restrict the volume of duty-free steel imports from non-EU countries, slashing the allowance by 50% in a bid to shield its domestic industries from cheap foreign steel, particularly from China. This protective measure, however, will not apply uniformly across all countries. Nations that have free trade agreements with the EU, like the United Kingdom, will experience less severe reductions in their duty-free quotas.
Under the new policy, which is scheduled to take effect in July 2026, steel imports from countries outside the EU will face a sharp reduction in tariff-free allowances, nearly halving the quotas from 2024 levels. Steel imports exceeding these new limits will incur tariffs of up to 50%. According to EU Trade Commissioner Maroš Šefčovič, these measures are intended to stabilize the market and guard against trade diversions, thus protecting European manufacturers.
Countries with free trade agreements, including the UK, Türkiye, India, South Korea, Brazil, and Ukraine, will see their steel export quotas reduced by roughly a third instead of the drastic 50% cut. This preferential treatment acknowledges the historic trade levels from 2022 to 2024, spanning 28 categories of steel products crucial to sectors such as automotive and construction.
This move highlights a significant divergence in trade policy between the EU and the UK since Brexit, as the UK has also implemented strategies to curtail foreign steel imports and bolster its domestic market. The EU’s decision comes amid a global steel market struggling with overproduction, particularly due to excess supply from China. European officials noted that the policy is partly in response to changes in global trade dynamics following the tariff measures enacted by the United States during former President Donald Trump’s administration.
Previously, there had been discussions about forming a “steel club” among the EU, the UK, and the US to collectively defend against unfair competition. However, the current quota approach suggests a more selective strategy. Despite this, EU officials remain optimistic about future collaborations that could protect European and allied industries from the challenges of global steel oversupply.