European Parliament backs tougher steel safeguards against global overcapacity

The European Parliament has approved new trade protection measures aimed at shielding the EU steel market from the effects of global overcapacity and rising import pressure.

The new regulation, which will replace the current steel safeguard measures expiring on June 30, 2026, introduces significantly stricter import restrictions and higher tariffs for steel entering the European market.

Lower quotas and higher tariffs

Under the new framework, annual tariff-free steel import quotas will be reduced to 18.3 million tonnes — around 47% below 2024 quota levels. Imports exceeding those limits will face a 50% customs duty, compared with the current 25% tariff.

The regulation also introduces a “melt and pour” rule to improve traceability and reduce circumvention. Under this principle, the origin of steel will be determined by the country where the material was first melted and cast, rather than where limited downstream processing may have taken place.

The European Commission will be required to consider steel origin when allocating annual country quotas.

The legislation, already agreed between Parliament and Council negotiators, was approved by 606 votes in favour, 16 against and 39 abstentions. The regulation is scheduled to enter into force on July 1, 2026.

EU steel sector described as strategically important

The European Parliament highlighted the strategic importance of the steel sector for Europe’s economy, industrial base and defence capabilities.

According to the Parliament, the industry has faced growing challenges from sustained import pressure linked to global overcapacity and has lost around 100,000 jobs since 2008.

Karlsbro: Europe needs “fair competition”

Karin Karlsbro, the Parliament’s lead negotiator on the file, said the measures are intended to support a competitive European steel sector while remaining compatible with World Trade Organisation rules.

“Europe needs a strong and competitive steel industry built on trade, innovation and fair competition,” Karlsbro said. “Combatting the negative trade effects of global overcapacity is essential.”

She also welcomed that exemptions for Russian steel slabs would not be extended and stressed that Ukraine should receive special consideration under the new regime.

“Ukraine is not the source of global overcapacity,” Karlsbro said. “We must treat them as a future EU member and strategic partner.”

Source: EU Parliament, Photo: Fotolia