Steel: EU Caps Imports at 18.3 Mt/year and Imposes 50% Out-of-Quota Duty as of July 1, 2026

Key Facts

On April 15, 2026, the industry acknowledged an agreement reached between the European Parliament and the Council on new measures to protect the European steel industry. An annual quota of 18.3 million tonnes will apply to 30 categories of steel imported into the EU, with a 50% customs duty on out-of-quota volumes. All imports from outside the EEA are affected. This measure is set to take effect on July 1, 2026. The industry will need to comply with the "melt-and-pour" rule to trace the metallurgical origin of imported steels (Mining, 15/04/2026, Reuters, 13/04/2026).

Key Points

• The European Parliament has established a steel import quota of 18.3 Mt/year effective from July 1, 2026
• A 50% customs duty applies out-of-quota for 30 product families (based on the Combined Nomenclature)
• The "melt-and-pour" rule requires declaration of the country where the steel was melted and poured, applying to all countries outside the EEA
• This measure replaces the WTO safeguard measures in force since 2018, which will expire on June 30, 2026 (Mining, 15/04/2026)
• In 2025, the industry operated in a global market with an already estimated overcapacity of 640 million tonnes (projected to reach 721 Mt by 2027, source: Alliance for American Manufacturing, 09/04/2026)

Background and Issues

The European steel sector has been facing intensified competition due to worldwide overproduction, particularly from China, for several years. According to the OECD, global overcapacity could reach 721 Mt by 2027—far exceeding European demand (Alliance for American Manufacturing, 09/04/2026). The WTO safeguard measures introduced in 2018 will expire on June 30, 2026, and will be replaced by this new regime. The traceability requirements of the "melt-and-pour" rule respond to increasing demands for transparency and the need to verify origin rules. The objective is to protect 2.5 million jobs linked to the industry and ensure compatibility with EU decarbonisation targets (Mining, 15/04/2026).

Impact for Industry Stakeholders

Declarants, freight forwarders, and importers will need to closely manage compliance with quota under suspension arrangements and anticipate application of the additional 50% duty beyond the quota threshold. The "melt-and-pour" rule will require the collection and declaration of documentation regarding the metallurgical value chain as soon as goods are released for free circulation. Precise customs classification according to the Combined Nomenclature becomes critical to allocation to the correct quota and proper application of tariff regimes.

Next Steps

• Effective date for quotas and out-of-quota duty set for July 1, 2026
• Expiry of WTO safeguard measures on June 30, 2026
• Three months granted to adapt internal procedures and documentary compliance systems

Quota set at 18.3 million tonnes of imported steel per year starting July 1, 2026, with out-of-quota duty reaching 50%.

Source: Mining, 15/04/2026 – Reuters, 13/04/2026 – Alliance for American Manufacturing, 09/04/2026