European steel processors are criticizing the EU’s new steel import quotas

Businesses warn of the risk of supply chain disruptions due to regulatory uncertainty

European steel processors and importers have criticized the European Commission’s approach to implementing a new system of safeguard measures following the expiration of the current safeguard regime. Industry representatives believe that the timeline for transitioning to the new rules does not reflect the realities of industrial supply chains and creates critical uncertainty for the market. This was reported by Eurometal President Alexander M. Julius.

Starting July 1, 2026, a significantly stricter steel market protection regime is set to take effect in the EU. It calls for a reduction in duty-free quotas by approximately 47% and an increase in duties on imports exceeding the quota to 50%.

However, market participants emphasize that there is still insufficient clarity regarding the allocation of quotas by country and product type. According to them, companies are forced to enter into import contracts without knowing whether the products will be subject to zero tariffs or a 50% tariff.

The industry notes that production chains in metallurgy require at least six months of planning, and for contract deliveries, this period often reaches a year. At the same time, the production and delivery of steel to Europe take about five months on average. An additional problem is the need for prior certification of many product types, which limits the ability to quickly switch suppliers.

According to representatives of the processing sector, the European Commission is effectively forcing companies to make strategic decisions in a “regulatory vacuum.” They warn that this situation poses a structural threat to European supply chains, especially against the backdrop of already weak demand and high pressure on the industry.

Market participants also emphasize that the new restrictions could impact not only importers but also European manufacturers of finished products, who depend on stable supplies of steel and semi-finished products.

Industry representatives are calling on the European Commission to align the timing of the new measures with the industry’s actual needs and to ensure greater predictability for businesses.

As reported by GMK Center, the Council of the European Union has outlined its position in detail regarding new safeguard measures on steel imports. Specifically, the annual quota volume has been set at 18.3 million tons, with a 50% duty on shipments exceeding the quota.

The allocation of quotas by product category should be based on the import shares of specific products during the 2022–2024 period. This reference period is considered appropriate because it accurately reflects the latest trade flows.