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EU Strikes Deal to Double Steel Tariffs and Cut Duty-Free Quotas

The deal still needs formal sign-off before a planned start in early July.

Overview

  • EU governments and lawmakers, who reached a political deal late Monday, set steel import duties at 50% and fixed a smaller duty-free quota.
  • The quota falls to 18.3 million tonnes a year, about a 47% cut, with unused quarterly volumes allowed to roll into the next quarter for one year.
  • The package would replace the current system that charges 25% once quotas are exceeded and would take effect around July 1, 2026 after formal approval.
  • The rules apply to imports from all countries except Iceland, Liechtenstein and Norway, and the Commission says the plan safeguards 2.5 million steel-linked jobs.
  • Officials say the measures respond to low-priced Chinese exports and global overcapacity, with EU output at 125.8 million tonnes last year versus about 960 million in China.