EU Halves Duty-Free Steel Quotas, Gives 13 Partners Up to 67% of Historic Trade
Updated
Updated · The Guardian · Jun 30
EU Halves Duty-Free Steel Quotas, Gives 13 Partners Up to 67% of Historic Trade
3 articles · Updated · The Guardian · Jun 30
Summary
From July 1, 2026, the EU will cut overall tariff-free steel imports by 47% to 18.3 million tonnes, while allowing 13 FTA partners including the UK to keep 66%-67% of historic trade volumes.
Brussels said the safeguards are meant to curb cheap Chinese steel and counter import diversion after US tariffs shut off part of the American market, with out-of-quota duties doubling to 50%.
The UK secured a 2.14 million-tonne tariff-free quota within the EU's 9.15 million-tonne system, but Tata Steel UK said its guaranteed duty-free exports were cut 60%, warning of a significant hit.
Eurofer called the curbs a game-changer that could restore up to 15 million tonnes of EU steel production, while UK Steel said 70% of British steel still goes to the bloc and sought better access in autumn talks.
The move marks the sharpest UK-EU steel trade split since Brexit, undercutting hopes for a tariff-free 'steel club' even as officials still float a future arrangement with Britain and the US.
Do the EU's new steel quotas signal a turning point in its long-term commitment to Ukraine's economic recovery?
Why did the EU base Ukraine's 'lifeline' steel quotas on war-depressed years, a move even the UK rejected?
EU Steel Quotas Target Ukraine: Economic and Political Fallout Ahead of July 2026
Overview
The European Union will introduce new steel import quotas on July 1, 2026, including Ukraine among the affected countries. This move is a response to major challenges in the EU steel industry, which has faced global overcapacity, rising import pressure, and a significant loss of production capacity since 2018. Capacity utilization in the sector dropped to a historic low of 67 percent in 2024. By imposing these quotas, the EU aims to protect its domestic industry and stabilize the market, but the inclusion of Ukraine raises concerns about the future competitiveness of Ukrainian steel producers.