Europe Agrees 50% Steel Tax, Cuts Import Quotas

Written by Martin Lynch, European News Editor for IIR News Intelligence (Sugar Land, Texas)

Summary

New measures to protect Europe's steel industry from global oversupply have been agreed by the European Parliament and Council.

The European Commission's (EC's) plan to slash steel import quotas and double the custom duties to 50% have been cleared by the European Parliament and Council.

The measures were proposed late last year to counter the negative effects of the global steel surplus on Europe's struggling steel industry. According to Industrial Info Resources data, there are more than 600 steel mills and smelters in Europe, led by Germany, France and Italy. Europe's steel industry produces approximately 146 million tonnes of steel annually contributing 215 billion euro (US$253 billion) in value to the region and employing 298,000 people directly and another 2.5 million in associated industries. Industrial Info Resources is tracking almost 1,500 steel and metals-related projects in Europe worth US$98 billion. Subscribers to Industrial Info Resources' Global Market Intelligence (GMI) Project Database can click here for the reports. For additional information, see October 15, 2025, article--Europe Doubling Steel Import Tax to 50%, Halving Import Quotas.

The Safeguards

The provisional deal will cut import quotas by 47% compared to 2024 levels, limiting tariff-free import volumes to 18.3 million tonnes a year. In addition, it will also impose a 50% customs duty, up from the current 25%, to imports above the quota and to steel goods not covered by it. The new safeguards will come into effect on July 1 after the current safeguards that have been in place since 2018 expire on June 30. In addition, the measure introduces a "melt and pour" requirement to enhance traceability and transparency across the steel supply chain. 

Global Oversupply

According to the EC, the measures are targeted at the impact of global steel overcapacity, which is projected to reach 721 million tonnes by 2027. Maroš Šefčovič, commissioner for Trade and Economic Security, said: "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."

Europe's Declining Steel Sector

Europe is the only major region that has lost approximately 65 million tonnes of capacity since 2007, according to EC data. In 2024, the region's capacity-utilisation rate reached 67%, well below the so-called healthy rate of 80%, while up to 100,000 jobs have been lost in the sector since 2007. All of the region's major steel and metals industry groups agree that the sector's survival is under increased threat from rising volumes of processed products imports, global trade distortions and protectionist measures by third countries and persistently high energy and regulatory costs in Europe. 

Back From The Brink

The European Steel Association (EUROFER) called the successful negotiations on the deal an "unprecedented response" that will protect European steel capacity and jobs. Axel Eggert, director general of EUROFER, said: "European steel has been standing at the edge of a cliff and this trade measure helps pull us back from the brink. By curbing unsustainable import pressure, it supports viable domestic steel capacity and enables the industry to continue its decarbonisation. It will bring back 15 million tonnes of EU steel-making capacity utilisation, while helping preserve around 30,000 direct jobs and 200,000 indirect jobs in Europe.'

Key Takeaways

• European lawmakers approve a plan to slash steel import quotas and double the custom duties to 50%.
• Steel industry claimed new safeguards will "help pull us back from the brink."
• Industrial Info Resources is tracking almost 1,500 steel and metals-related projects in Europe worth US$98 billion.

About Industrial Info Resources

Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, Industrial Info Resources is tracking over 250,000 current and future projects worth $30.2 Trillion (USD).