EU Steel Safeguard Measure Negotiations
Summary
The European Commission has welcomed the start of trilogue negotiations on a new EU steel safeguard measure. The proposed regulation aims to protect the EU steel industry by reducing tariff-free import volumes, doubling out-of-quota duties, and introducing a 'melt & pour' requirement. The measure is intended to be fully in place by July 1, 2026.
What changed
The European Commission has initiated trilogue negotiations for a new EU steel safeguard measure, aiming to protect the EU's steel industry from global overcapacity. Key provisions include reducing tariff-free import volumes to 18.3 million tons annually (a 47% cut), doubling out-of-quota duties to 50%, applying the measure to all origins except EEA countries, and implementing a 'melt & pour' requirement for improved supply chain traceability. This proposal addresses the threat posed by projected global overcapacity and aims to support the EU's decarbonisation goals and protect jobs.
Regulated entities, particularly importers and exporters of steel into the EU, should prepare for significant changes to import quotas and duties. The negotiations aim to finalize the text swiftly for full implementation by July 1, 2026, when the current safeguard measure expires. While the document does not explicitly state penalties for non-compliance, failure to adhere to the new import limits and duty rates would likely result in significant financial penalties and trade restrictions. Companies should monitor the outcome of the negotiations and prepare to adjust their import strategies accordingly.
What to do next
- Monitor the outcome of the trilogue negotiations regarding the new steel safeguard measure.
- Review current import volumes and duty structures for steel products entering the EU.
- Prepare to adjust import strategies and supply chain documentation to comply with reduced tariff-free volumes, increased duties, and the 'melt & pour' requirement by July 1, 2026.
Source document (simplified)
The new EU regulation will provide effective protection to the EU’s steel industry from global overcapacity by:
- Reducing tariff-free import volumes to 18.3 million tons per year (a 47% cut compared to 2024 quotas);
- Doubling out-of-quota duties to 50%;
- Covering all origins (except EEA countries), and;
- Introducing a 'melt & pour' requirement to improve traceability and transparency of the EU’s steel supply chain. The proposal addresses the negative effects on the EU’s steel market of unsustainable levels of global overcapacity, which is projected to reach 721 million tons by 2027 (about five times the EU’s yearly consumption): a real threat to our steel industrial base. It also supports the EU’s decarbonisation goals and protects 2.5 million jobs linked to steel production.
The negotiations between the Commission, the European Parliament and the Council will focus on finalising the text swiftly so that the measure can be fully in place by 1 July, when the current safeguard measure will expire.
Once in force, the new measure will provide a solid trade framework for a strong, competitive, and sustainable EU steel sector while maintaining WTO compatibility and continue to engage constructively with global partners on collective solutions.
More information
Commission proposes plan to protect EU steel industry from unfair impacts of global overcapacity - 7 October 2025
Details
Publication date 24 February 2026 Author Directorate-General for Trade and Economic Security Location Brussels Trade topics
- Safeguards
- Trade defence
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