eu clamps down on steel imports with sharp quota cuts and new duties
Brussel, donderdag, 5 februari 2026.
the european parliament has moved to shield its steel industry from a flood of cheap imports. new rules slash annual steel import quotas by 47%, limiting them to 18.3 million tonnes. volumes exceeding this cap will face a steep 50% customs duty. the measure targets global overcapacity, especially from china-backed producers. it also bans all steel imports from russia and belarus. lawmakers stress the need for strategic autonomy in vital industries. the move replaces expiring wto safeguards and signals a tougher stance on trade. while supporting ukraine with tariff-free access, the eu is firm on blocking russian steel. the steel market faces major shifts by mid-2026.
eu clamps down on steel imports with sharp quota cuts and new duties
The European Parliament has taken decisive action to protect the EU steel market from global overcapacity. On February 1, 2026, the International Trade Committee approved measures to reduce annual steel import quotas by 47% compared to 2024 levels, setting a new limit of 18.3 million tonnes [1]. Imports exceeding this threshold will face a 50% customs duty. The move specifically addresses unfair competition from state-subsidized steel exports, primarily originating from China. The regulation also introduces a total ban on steel imports from Russia and Belarus [1][2]. These actions mark a strategic pivot toward greater industrial self-reliance.
phasing out expiring wto safeguards
Current WTO-based steel safeguards, in effect since 2018, are scheduled to expire on June 30, 2026, following the maximum allowable duration under international trade rules [1]. Their removal without replacement would expose the EU steel sector to intensified import pressure. The newly adopted measures are designed as a successor regime to prevent market disruption. Lawmakers emphasized the persistent nature of global overcapacity, noting it has worsened in recent years [1]. The new framework ensures continuity in market defense beyond mid-2026 [1][2].
economic and geopolitical balancing act
The revised trade policy simultaneously strengthens defenses against adversarial economies and reinforces alliances. While imposing strict limits on Chinese, Russian, and Belarusian steel, the EU maintains preferential treatment for key partners. Notably, the package preserves tariff-free access for Ukrainian steel exports [1]. This distinction reflects both geopolitical solidarity and strategic economic planning. Rapporteur Karin Karlsbro described the outcome as demonstrating “European resolve”—supporting allies while confronting threats to industrial stability [1]. The approach attempts to balance protectionism with targeted openness.
implications for european industry
The EU steel industry has suffered from prolonged import surges linked to massive overcapacity abroad, resulting in plant closures and job losses across member states [1]. Domestic capacity utilization remains below profitability thresholds, hindering investments in modernization and decarbonization. By restricting inflows of artificially cheap steel, the new rules aim to restore market equilibrium. However, downstream sectors reliant on imported steel may face higher input costs [1]. The European Commission is mandated to monitor the regulation’s economic impact and consider adjustments to the product coverage if necessary [1].
internal tensions over raw material flows
While the EU acts collectively on finished steel imports, internal friction arises over raw materials. Since January 1, 2026, Ukraine has enforced a zero export quota on ferrous scrap, a crucial feedstock for electric arc furnace (EAF) steelmaking [3]. Poland, which depends on scrap for roughly half its steel output, has formally protested this restriction to the European Commission [3]. Polish authorities argue the ban distorts competition by subsidizing Ukrainian mills at the expense of EU producers [3]. This situation illustrates the complexity of managing integrated supply chains during regional crises [3].