Europe strengthens its trade defence: the EU proposes reducing steel quotas and raising tariffs to 50%
The European Union has moved forward in defining a new safeguard framework for the European steel sector, with proposals aimed at reducing the volume of tariff-free imports and increasing the duties applied to imports that exceed the new quotas, against a backdrop of persistent global overcapacity.
The Council of the European Union adopted, on 12 December 2025, a negotiating mandate with the European Parliament to strengthen the rules that will replace the current steel safeguard measure, which is due to expire on 30 June 2026. The purpose of the mandate is to protect the EU steel industry from the negative effects arising from the growing volume of steel imports, which according to the European Commission could erode competitiveness and production within the EU.
The approved text retains key elements of the original proposal presented by the European Commission, including a significant reduction in tariff-free import quotas, limiting them to approximately 18.3 million tonnes per year compared to higher previous levels, and the doubling of the tariff applied to imports exceeding those thresholds, raising it to 50% from the current 25%. This combination of lower exempt volumes and higher tariffs aims to rebalance the European internal market and ease competitive pressure from subsidised imported steel, particularly from countries such as China.
This approach has also been echoed by industry observers. Recent reports from industrial associations indicate that the proposed measures could result in higher costs for companies that rely on imported steel inputs, as a larger volume would be subject to higher tariffs and reduced duty-free quotas could restrict access to more competitively priced supplies within the EU market.
The European Commission’s proposal to raise tariffs to 50% once quotas are exceeded and to reduce tariff volumes has been widely reported in specialised media and economic news agencies, which note that these changes form part of an effort to safeguard Europe’s industrial capacity and preserve employment in the sector in the face of global competition.
Although these measures are still subject to negotiation and final approval by the EU institutions, the mandate adopted by the Council has accelerated the legislative timetable, with the aim of ensuring that the new safeguard regime is in place before the current framework expires in June 2026.
For further information, the official press release of the Council of the European Union can be consulted at the following link:
If you have any questions about how these measures may apply to your goods or about their impact on your commercial operations, we recommend contacting us for personalised advice.
