EU adopts new steel tariffs and quota regime

The European Union Council approved a regulation that creates a new framework to protect the EU steel market from the impact of excessive global production capacity. The rules, which take effect on 1 July, revise existing tariffs and introduce a revised tariff‑quota (TRQ) system that lowers import quotas, raises duties on imports exceeding those quotas and allows the transfer of unused quota portions between quarters within the same year.

The measure is part of the Action Plan for Steel and Metals 2025 and aims to cut the bloc’s reliance on Russian steel. According to Cyprus’s minister of energy, trade and industry, Mikael Damijanos, “by adopting the regulation the Union establishes a stronger framework for responding to market disturbances, protecting fair competition and giving greater security to steel producers and related industries.” The EU steel sector, the world’s third‑largest producer, employs around 300 000 workers and is confronting a projected global overcapacity of 721 million tonnes – more than five times the EU’s annual consumption.