EU cuts duty-free steel quota by 47% and doubles tariffs starting July 2026

The European Union has officially established new steel tariff-quota terms effective July 1, 2026, permitting 18.3 million tonnes of steel to enter duty-free annually under a revised safeguard system. This measure cuts the previous tariff-free quota by 47% and doubles the out-of-quota duty from 25% to 50% to protect the EU steel industry from the negative effects of global overcapacity and surplus. The new regulation replaces measures expiring on June 30, 2026, and introduces stricter traceability rules, including a "melt and pour" requirement to determine steel origin and prevent circumvention through minimal processing in third countries. Imports from Iceland, Liechtenstein, Norway, and Ukraine remain exempt from these restrictions, reflecting the EU's continued support for Ukraine amid Russia's ongoing invasion.