On 1 July 2026, the new European safeguard system for steel imports entered into force. With the new regulation, the European Union strengthened the measures already introduced in 2018, reducing duty-free import quotas and increasing the duty applied to volumes exceeding the available quotas.
The aim is to protect the European steel industry from the effects of persistent global overcapacity and the growing inflow of steel from third countries.
What changes from 1 July 2026
The new system maintains the mechanism of tariff-rate quotas (TRQs), but introduces significant changes compared with the previous regime.
The main changes are:
- reduction of annual duty-free import quotas;
- total quota set at 18,345,922 tonnes;
- increase of the out-of-quota duty from 25% to 50%;
- new system for distributing quotas between countries with preferential trade agreements and other exporting countries.
Imports falling within the available quotas can continue to enter the European market without paying the safeguard duty. Once the quota for a specific product category is exhausted, imports are subject to a 50% ad valorem duty, in addition to any other applicable customs duties.
Product categories covered
The new safeguard measures apply to 26 categories of steel products. The following categories are listed in Annex I of Regulation (EU) 2026/1384:
- Non Alloy and Other Alloy Hot Rolled Sheets and Strips
- Non Alloy and Other Alloy Cold Rolled Sheets
- Electrical Sheets (other than GOES)
- Metallic Coated Sheets
- Organic Coated Sheets
- Tin Mill Products
- Non Alloy and Other Alloy Quarto Plates
- Stainless Hot Rolled Sheets and Strips
- Stainless Cold Rolled Sheets and Strips
- Stainless Hot Rolled Quarto Plates
- Non Alloy and Other Alloy Merchant Bars and Light Sections
- Rebars
- Stainless Bars and Light Sections
- Stainless Wire Rod
- Non Alloy and Other Alloy Wire Rod
- Angles, Shapes and Sections of Iron or Non Alloy Steel
- Sheet Piling
- Railway Material
- Gas Pipes
- Hollow Sections
- Seamless Stainless Tubes and Pipes
- Other Seamless Tubes
- Large Welded Tubes
- Other Welded Pipes
- Non-alloy and other alloy cold finished bars
- Non Alloy Wire
Why the quota was set at 18.3 million tonnes
The European Commission calculated this volume by applying the import market share recorded in 2013, around 13%, to total steel consumption in the European Union in 2024, the latest year for which complete data were available.
Imports originating in Russia and Belarus, which are already subject to import bans in the European Union, were not included in the calculation. The result is a total annual quota of 18,345,922 tonnes.
Why the EU strengthened the measures
According to the European Commission, the global market continues to be affected by significant production overcapacity.
Estimates indicate that excess capacity could increase from 602 million tonnes in 2024 to 721 million tonnes by 2027, creating growing pressure on imports into the European market.
Since 2018, the European steel sector has also recorded:
- more than 30 million tonnes of lost production capacity;
- around 30,000 jobs lost;
- an average capacity utilisation rate of only 67% in 2024.
The previous system introduced in 2018
Safeguard measures had already been introduced in 2018, following tensions in international steel trade.
The system provided for:
- tariff-rate quotas (TRQs);
- imports within quota without additional duty;
- a 25% duty on imports exceeding the available quota.
The new regulation keeps this structure, but reduces the available volumes and doubles the out-of-quota duty.
How the new quotas are distributed
The quotas are not distributed exclusively on the basis of historical import or export volumes.
Article 5 of the regulation states that the European Commission must take several elements into account, including:
- the historical import market share;
- the distribution of imports by product category;
- existing or future trade agreements;
- the effects of trade measures adopted by third countries;
- diversification of sources of supply;
- other elements of interest to the European Union.
The implementing regulation also provides for a distribution of quotas between trading partners with preferential agreements and other exporting countries, as well as country-specific quotas for certain countries and product categories.
Are countries with trade agreements subject to the new duty?
Yes.
Countries benefiting from preferential trade agreements with the European Union are also subject to the new system. Once the available quotas are exhausted, the 50% duty also applies to them.
Only Iceland, Liechtenstein and Norway are excluded, along with cases where specific bilateral safeguard measures provided for by the regulation apply.
Which sectors could be most affected
The new measures concern steel products and semi-finished products used in many industrial sectors.
The sectors that could be most affected include:
- construction;
- automotive;
- earthmoving machinery;
- agricultural machinery;
- industrial plants;
- mechanical components;
- oil & gas;
- railway infrastructure.
The actual impact will mainly depend on the imported product category, the country of origin and the speed at which available quotas are exhausted during the year. If the quota for a specific category is reached quickly, importing companies will have to pay the new 50% duty, with possible increases in procurement costs for certain raw materials and semi-finished products.
Sibo Steel Bushings
For companies using steel components and semi-finished steel products, monitoring the evolution of import quotas and their potential impact on raw material procurement costs will become increasingly important.
Sibo manufactures steel bushings for industrial applications and produces custom steel components. To receive our technical catalog, simply complete the form below. For custom projects, quotations or further information, contact us.
