The European Union is introducing lower limits on duty-free steel imports. Once the permitted import volume is exceeded, the tariff will no longer be 25%, but 50%. The measures are included in a regulation approved by the European Parliament in May this year. Their aim is to protect the EU steel industry, which is facing a number of difficulties caused by a global oversupply of steel. The new rules may also strengthen the competitiveness of the Polish steel sector.
According to the Council of the European Union, global steel overcapacity is expected to rise to 721 million tonnes by 2027. This would be more than five times higher than annual steel consumption in EU member states. As a result of measures limiting steel imports elsewhere, the EU market has so far been one of the main destinations for global steel surpluses.
In recent years, this has led to a significant increase in imports, low capacity utilisation in the EU steel industry, which stood at 67% in 2024, and high production costs. According to data from the European Steel Association EUROFER, the share of imports in EU steel consumption reached 29% in the third quarter of 2025. For the whole of 2024, it stood at 27%. In response to these market changes, the European Commission prepared new rules designed to protect EU steel producers.
“Above all, we are talking about mechanisms that will prevent unfair competition from countries that, for example, subsidise this industry, or from those that, because they do not have specific requirements concerning energy production, are able to apply dumping prices,” Borys Budka, Member of the European Parliament from Civic Coalition and Chair of the European Parliament’s Committee on Industry, Research and Energy, told Newseria.
The new regulation, adopted by the European Parliament on 19 May, provides for a reduction in import quotas. As a result, the volume of duty-free imports is to fall to 18.3 million tonnes per year, which is 47% less than in 2024. Once this limit is exceeded, imports will be subject to a 50% tariff instead of the current 25%.
In its comment, EUROFER stressed that even after these changes, the EU will remain one of the most open steel markets in the world. Steel producers support the move, but are also calling for further measures, including those aimed at strengthening internal demand for steel. On the other hand, the new regulations are causing concern among users of imported steel, who fear an increase in raw material prices.
“It is very important that, when introducing these mechanisms, we remember to protect European industry. These tools must also be implemented very carefully. Some sectors are already signalling that without changes to certain proposals, a spiral could be triggered in other industries,” says Budka. “We are therefore trying to minimise these risks, and I hope that ultimately these regulations will strengthen the competitiveness of the European steel industry.”
The new rules are intended to replace the safeguard measures that have been in force since 2018 and are set to expire on 30 June 2026.
Steel is a material essential to the EU economy, including the green transition and strategically important sectors such as defence. The EU steel industry is the third-largest steel producer in the world. According to the European Steel Association, the sector comprises around 500 production sites in 22 countries, directly employs about 300,000 people and produces an average of 146 million tonnes of steel per year. The Council of the EU reports that since 2007, the sector has lost around 65 million tonnes of production capacity and 100,000 jobs.
“We need a strong EU economy, a strong internal market and dialogue with partners. However, we must remember that we live in very difficult times when it comes to fair international trade. We are seeing very large subsidies from, for example, the United States and China. Europe must respond appropriately if we want our industry to survive,” says the MEP.
In February this year, EUROFER, citing Eurostat data, reported that in the second half of 2025 EU steel exports to the United States fell by 30% year on year following the introduction of 50% tariffs by the Trump administration.
According to Budka, the new import rules may also benefit the Polish steel industry.
“In Poland, we have steel investments by ArcelorMittal in the Silesian Voivodeship. We have always been strong in steel production, and I would like these new regulations to help keep it that way, so that Poland remains a significant player in the European Union and, consequently, in the future, on the international stage,” he says.
Representatives of ArcelorMittal also point out in the company’s first-quarter results that lower levels of imports should lead to higher capacity utilisation, helping restore profitability and return on capital to healthy and sustainable levels.
