
8 days · 2 summary articles
EU slashes duty-free steel import quotas by nearly a third, doubles tariffs on excess volumes
EU formally adopts tariff commitments under new US trade framework with safeguards
The European Union on Wednesday began enforcing sweeping new limits on tariff-free steel imports, slashing duty-free quotas by nearly a third and doubling the tariff on excess volumes to 50 percent as part of a broader push to shield domestic producers from global overcapacity. The measures, agreed in Brussels on 30 June 2026, take effect immediately and apply to 12 partner countries including Switzerland, the United Kingdom and Canada, while China faces the most severe reductions under the new regime.
Under the revised market-access rules, the EU’s combined duty-free steel quota for partner countries will fall from 27.3 million tonnes to 18.3 million tonnes annually, a 33 percent cut confirmed by a European Commission official . Any imports above these levels will now face a 50 percent duty, up from the previous 25 percent rate. Norway, Iceland and Liechtenstein—members of the European Economic Area—are exempt from the restrictions, but Switzerland’s request for an exemption was denied .
The United Kingdom’s steel sector will be among the hardest hit, with Brussels reducing its duty-free quota by nearly a quarter compared to 2025 volumes. British steelmakers have called for further negotiations to secure more generous country-specific allowances . The EU’s move follows similar protective steps taken by the UK, the United States and Canada, reflecting a coordinated effort to counter what Brussels describes as “systemic overcapacity,” particularly from China .
In a parallel trade shift, the EU on Wednesday also began eliminating tariffs on a range of US industrial goods, fulfilling a commitment made in last year’s EU-US trade accord. The elimination of duties on American products, including consumer items such as lobsters, takes effect on 2 July 2026, ending a long-standing irritant in transatlantic relations that had been exacerbated by threats from Washington earlier in the year .
The dual policy shift underscores the EU’s balancing act between defending its industrial base and maintaining strategic trade relationships. While Brussels seeks to de-escalate tensions with Washington, it is simultaneously tightening the screws on Chinese steel imports, with EU trade chief Valdis Dombrovskis warning in Brussels on Monday that Brussels would set an October 2026 deadline for tangible results in negotiations with Beijing . Analysts say the new steel quotas and tariffs mark a decisive turn toward managed trade in strategic sectors, with long-term implications for supply chains across Europe and beyond.
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