Major global economies including the European Union, the United States, and Mexico are tightening steel trade restrictions at the same time, creating a major impact on global steel procurement and international steel supply chains.
The European Parliament has approved a new steel trade protection framework aimed at reducing cheap steel imports and supporting domestic steel manufacturers. Under the new rules, tariff-free steel imports into Europe will be reduced by nearly 47%, while tariffs on excess imports will double from 25% to 50%. The proposal received strong support in the European Parliament, with 606 votes in favor. The new regulation will replace the current safeguard system that has been in place since 2018 and is set to expire in June 2026.
Under the revised framework, annual tariff-free steel imports will now be capped at 18.3 million metric tons. Any steel imported beyond this limit will face a heavy 50% duty. This move is expected to reshape global steel procurement strategies for exporters and buyers worldwide. European authorities said the decision was necessary to protect local steel industries from global overproduction and unfair competition. According to the EU, around 100,000 jobs in Europe’s steel sector have been lost since 2008 due to market pressure and rising imports.
The new rules also introduce stricter traceability requirements to stop countries from bypassing trade restrictions through minimal processing of steel products. Going forward, the origin of steel will be identified based on the country where the steel was first melted and formed, rather than where it was later processed or modified.
The European Commission will also review whether additional steel product categories should be included under these safeguards in the future. However, Ukraine has been given special consideration, as the EU acknowledged that the country’s steel industry has been severely affected by the war with Russia.
Before becoming official, the regulation still needs final approval from the European Council. If implemented, the move could significantly influence global steel procurement flows, steel pricing, and export opportunities across multiple regions