The European Commission has welcomed the political agreement reached between the European Parliament and the Council on a new measure aimed at protecting the EU steel sector from the effects of global overcapacity.
The measure is intended to ensure the long-term viability of the European steel industry and will replace the current EU steel safeguard regime, which has been in place since 2018.
Under the new framework, tariff-free quotas will be set at 18.3 million tonnes per year, with an out-of-quota duty of 50% applied to 30 categories of steel products imported into the EU. In addition, the measure introduces a “melt & pour” requirement to enhance traceability and transparency across the steel supply chain.
The rules will apply to imports from all countries, with the exception of EEA countries, which will remain subject to the “melt & pour” requirement. The agreed text reflects the key elements of the Commission’s proposal presented in October 2025.
The measure aims to address the impact of global steel overcapacity, which is projected to reach 721 million tonnes by 2027, and to support approximately 2.5 million jobs linked to the European steel sector. It also contributes to the EU’s broader decarbonisation objectives.
The new system will replace the current safeguard mechanism, which operates through tariff rate quotas across 28 product categories.
The agreement will now be submitted for formal adoption by the European Parliament and the Council, with the objective of entry into force on 1 July 2026, coinciding with the expiry of the current safeguard measure.
The Commission is preparing implementing acts on the allocation of quotas by country and on the documentation required to comply with the “melt & pour” requirement. In parallel, discussions with trading partners are ongoing under WTO procedures to ensure the compatibility of the measure with international trade rules.
Stéphane Séjourné, Executive Vice-President for Prosperity and Industrial Strategy, stated: “The steel industry has been at the foundation of our European unity. There is no prosperous Europe without a sustainable, strong and sovereign steel industry. On this strategic sector, like many others, we will do whatever it takes to maintain production, jobs and skills alive in our continent.”
Maroš Šefčovič, Commissioner for Trade and Economic Security, added: “The shape and global standing of Europe’s steel sector are fundamental to our strategic autonomy and industrial strength. We therefore cannot afford to turn a blind eye to global overcapacity reaching critical levels. Today’s outcome helps bring much-needed stability for our producers to thrive in Europe — because this is, at its core, about people and jobs. I welcome the shared urgency of the co-legislators to turn our proposal into action, as we also continue engaging with partners worldwide.”
The initiative forms part of the EU’s broader industrial and trade policy framework, including the Steel and Metals Action Plan adopted in March 2025 and ongoing efforts to address global steel overcapacity through international cooperation.
