Brussels: The European Council has adopted a regulation to establish a new framework designed to shield the EU steel market from the adverse trade-related impacts of global overcapacity. This initiative is part of the Steel and Metals Action Plan of 2025.

According to Emirates News Agency, the newly approved rules will replace the existing EU steel safeguard measure, which is set to expire on 30th June 2026. The updated framework ensures that protection for the EU steel sector will continue unabated. The changes are scheduled to come into effect on 1st July, following a vote where 25 out of the 27 EU member states supported the amendment.

The new procedures entail a substantial reduction in duty-free quotas, decreasing them by approximately 47%. This change permits the import of 18.3 million tonnes of steel annually without incurring tariffs. However, imports exceeding these quotas will face a 50% customs duty, a significant increase from the current rate of 25%.

This action is part of the European Union's broader strategy to fortify its industrial sector against global challenges and intensifying competition within steel markets.