This article is brought to you in association with the European Commission.
The European Commission welcomes the political agreement reached today between the European Parliament and Council on the measure to protect the EU steelmaking sector against global overcapacity. This is a vital step towards ensuring the long-term viability of a strategic European industry.
The new measure sets tariff-free quotas at 18.3 million tons per year, with an out-of-quota duty set at 50% for 30 categories of steel products imported into the EU. It also introduces a ‘melt & pour’ requirement to improve traceability and transparency of the EU steel supply chain. The measure will apply to imported products from all countries, except for EEA countries – the latter will still be subject to ‘melt & pour’ requirements. The agreed text reflects all the key elements of the Commission’s proposal of 7 October 2025.
The measure will address the negative trade-related effects of global steel overcapacity – projected to reach 721 million tons by 2027, which is more than five times the EU’s annual steel consumption. It will also shield 2.5 million jobs linked to steel production and support the EU’s decarbonisation goals.
The new measure will replace the existing EU steel safeguard, which has since 2018 imposed a Tariff Rate Quota (TRQ) system on 28 product categories, permitting duty-free imports up to a limit before a 50% tariff applies.
Next steps
The agreed text will now be considered for formal adoption by the European Parliament and the Council over the coming weeks, with the aim to ensure its entry into force on 1 July 2026, when the current steel safeguard measure expires.
The Commission is continuing its preparation of two implementing acts: on country allocation of quotas and the documentary evidence needed to meet the ‘melt & pour’ requirement, respectively. In parallel, the Commission is negotiating with trading partners under the General Agreement on Tariffs and Trade (GATT) Article XXVIII proceedings, thus ensuring the World Trade Organisation (WTO) compatibility of the measure.
The EU will continue to engage constructively with global partners on collective solutions to the problem of global steel overcapacity, both bilaterally and collectively in the context of the Global Forum on Steel Excess Capacity (GFSEC).
Background
European Commission President Ursula von der Leyen identified the EU’s steel industry as a core engine for European prosperity. The Competitiveness Compass for the EU, adopted in January 2025, identified steel and metals as a key area for action. The Strategic Dialogue on Steel, hosted by the President in March 2025, reflected the critical challenges faced by the sector and the need for urgent actions.
In March 2025 the Commission adopted a Steel and Metals Action Plan, outlining actions across different policy areas including a trade measure to replace the steel safeguard. The Commission first introduced the latter measure on imports of certain steel products in July 2018, to prevent economic damage to EU steel producers from trade diversion and rising imports.
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