On 24 June 2026 the European Union (EU) published Regulation 2026/1384 of the European Parliament and Council, dated 17 June 2026, introducing tariff quotas on steel imported into the EU.
The proposed tariff quotas will affect all countries, including countries with which the EU has trade agreements and countries benefitting from autonomous tariff preferences. The tariff quotas will be reviewed on a quarterly basis.
The out-of-quota tariff on imports into the EU will be set at 50%.
The introduction of the tariff quotas is stated to be in response to the global overcapacity in steel production which manifested since 2013, with 2013 being set as the base year for imports in determining the quota allocation by country. Quota allocations will be determined by product category and will be based on imports of affected products into the EU during the period 2022 to 2024.
Where appropriate, the Regulation allows for the application of bilateral safeguard measures in respect of products imported from countries with which the EU has concluded free trade agreements.
The scope of product to be covered by the tariff quotas will be reviewed periodically. Importantly, the Regulation provides for the review of the product scope to be expanded to products made of, or containing a significant amount of steel by 30 June 2027. This provision, in itself, opens the door for a significant expansion of the scope of tariff quotas that may be implemented, reaching beyond the primary steel sector.
The periodic assessments provided for in the Regulations further set 30 June 2028 as a timeline for determining whether it will be necessary to designate countries of “melt and pour” as the basis of benefiting from tariff quotas under the Regulation, addressing the concern of steel produced in countries contributing to significant over capacity entering the EU following transformation in other countries.
Tariff quotas will be opened on an annual basis from 1 July to 30 June of the following year.
The affected product categories are listed in Annexure I and the proposed Tariff Quotas are listed in Annexure II to the Regulation. If you want the detail, get in touch.