EU halves duty‑free steel quota and raises tariffs to 50%

From 1 July 2026 the European Union introduced a new steel‑import regime that cuts the duty‑free quota by 47 % to 18.3 million tonnes per year and applies a 50 % tariff on any imports that exceed the quota. The annual quota is split evenly: half is reserved for countries that have a free‑trade agreement with the EU, the other half is open to all trading partners.

The measures aim to protect the EU steel sector from a global overcapacity of about 620 million tonnes, which threatens to depress prices and employment. The Commission says the rules will raise utilisation of European mills from roughly 65 % to 80 % and replace the 2018 safeguard system that imposed a 25 % tariff on excess imports. The new framework will be reviewed every three years.

Brazil, among other exporters, has criticised the limits, saying they restrict market access and do not solve the worldwide over‑production problem, and it is demanding compensation under GATT. Switzerland, which has a long‑standing bilateral agreement with the EU, will receive lower duty‑free steel volumes than before, prompting industry complaints. The policy is expected to affect roughly 300 000 workers in the EU steel industry and could have knock‑on effects for downstream sectors such as automotive and construction.