European Commission Sets Country-Specific Steel Tariff Quotas

Summary

• On 29 June 2026, the European Commission adopted Implementing Regulation (EU) 2026/1457, published in the OJEU on 30 June 2026, distributing the 18.3 million tonnes of annual tariff-rate quotas across 26 steel categories established under Regulation (EU) 2026/1384 (the “Steel Regulation”); imports exceeding these quotas trigger a 50% out-of-quota duty, doubled from the previous 25% safeguard rate. [eur-lex.europa.eu], [eurometal.net]
• Half of the total quota (9.17 million tonnes) is reserved exclusively for Free Trade Agreement (FTA) partners, with country-specific allocations for those holding at least a 5% share of EU imports during 2022–2024; the remaining half is open to all trading partners on an MFN basis, with residual volumes available on a first-come, first-served basis. [policy.tra….europa.eu], [eunews.it]
• Iceland, Liechtenstein and Norway are excluded from the quota regime under the EEA Agreement; Russia and Belarus remain subject to separate restrictive measures and are excluded from the calculation; a separate implementing act on“melt and pour” documentary evidence will apply from 1 October 2026. [ec.europa.eu], [tradecompl…rcehub.com]

Article

Commission fills the last piece of the EU’s new steel trade regime

On 30 June 2026, the European Commission published in the Official Journal Commission Implementing Regulation (EU) 2026/1457 of 29 June 2026 on the distribution of tariff quotas opened under the Steel Regulation (EU) 2026/1384, and amending https://eur-lex.europa.eu/eli/reg_impl/2020/2170/oj on the application of Union tariff quotas. The Implementing Regulation applies from 1 July 2026 until 31 December 2026, closing the country-allocation gap that had left importers uncertain in the weeks preceding entry into force. [eur-lex.europa.eu], [eurometal.net]

The parent Steel Regulation – tightening the screw on imports

The Steel Regulation, adopted by the Parliament and Council on 17 June 2026 and published on 24 June 2026, replaces the EU steel safeguard measures in force since 2018, which expired on 30 June 2026. It introduces annual tariff-rate quotas of 18,345,922 tonnes across 26 steel product categories — a reduction of roughly 47% compared to 2024 quota volumes — and doubles the out-of-quota duty from 25% to 50% ad valorem. Quotas are administered on a quarterly basis, with unused volumes carried over between quarters during the first year of application. [eur-lex.europa.eu], [tradecompl…rcehub.com], [etude.lu]

The Commission justified the tighter regime by reference to global structural overcapacity — estimated by the OECD at over 620 million tonnes, potentially reaching 721 million tonnes by 2027, more than five times annual EU consumption — and the risk of trade diversion caused by U.S. and other third-country tariffs. [ec.europa.eu], [eunews.it]

Allocation methodology: FTA vs MFN split

Implementing Regulation (EU) 2026/1457 divides the 18.3 million tonnes into two parts:

• FTA Part (9.17 million tonnes, ~50%) – reserved exclusively for countries with an existing or future free trade agreement with the EU;
• MFN Part (9.17 million tonnes, ~50%) – open to all third countries, including FTA partners, on a most-favoured-nation basis. [eur-lex.europa.eu], [policy.tra….europa.eu]

Within each part, the Commission applied criteria set out in Article 5 of the Steel Regulation, in line with WTO rules and taking into account Article XXVIII GATT negotiations that the EU has conducted with more than twenty trading partners since October 2025. [eur-lex.europa.eu], [ec.europa.eu]

Country-specific vs residual quotas

• Country-specific quotas are granted to trading partners that held at least a 5% share of import volumes based on the 2022–2024 reference period, per product category.
• FTA partners whose country-specific quota is exhausted may access an additional FTA-only residual quota on a first-come, first-served basis.
• Countries without a country-specific quota in a given product category are limited to the residual“other countries” quota. [policy.tra….europa.eu], [lyhsteel.com]

Because of the preferential FTA treatment, the Commission expects that most FTA partners will experience a market-access reduction significantly below the 47% average. According to Reuters via Global Banking & Finance, a “significant number” of partners have provisionally agreed to the proposed allocations. [globalbank…inance.com], [eunews.it]

Excluded countries

• Iceland, Liechtenstein and Norway: excluded from the quota regime altogether under the EEA Agreement, in view of their integration into the internal market. [ec.europa.eu]
• Russia and Belarus: excluded from the quota calculation and remain subject to separate restrictive measures (sanctions). [eurometal.net]

Melt-and-pour traceability – separate implementing act

A key transparency measure of the Steel Regulation is the“melt and pour” rule, under which the country of origin for quota purposes will (from a later date) be identified as the country where the steel was first transformed from liquid to solid form (e.g. slabs, billets or ingots), not the country of subsequent processing. [eurometal.net]

At present, melt-and-pour serves as a traceability requirement only and is not yet used for quota allocation. A separate implementing act, to be adopted by 31 August 2026 following a stakeholder consultation closing on 2 July 2026, will set out the documentary evidence importers must provide (e.g. a Mill Test Certificate). That obligation applies to importers from 1 October 2026. [tradecompl…rcehub.com], [expometals.net]

Review and comitology

The quota distribution is provisional in nature: it applies until 31 December 2026 and will be re-submitted to the relevant Member States committee under the standard comitology procedure before the end of 2026, allowing for adjustments in light of ongoing Article XXVIII GATT negotiations and market developments. [eur-lex.europa.eu], [etude.lu]

Future adjustments to the overall quota volume are bounded by a floor of ~15.2 million tonnes and a ceiling of ~22.2 million tonnes, reviewed every three years. [etude.lu]

Practical takeaways for importers

• Map sourcing countries to the new country-specific / FTA / MFN / residual quota buckets per product category to anticipate exposure to the 50% out-of-quota duty. [lyhsteel.com]
• Plan quarterly shipments carefully — carry-over of unused quota volumes is only automatic in the first year (1 July 2026 – 30 June 2027). [expometals.net]
• Prepare documentation (Mill Test Certificates, supplier declarations) to comply with the melt-and-pour evidence requirement from 1 October 2026. [tradecompl…rcehub.com]
• Monitor the December 2026 review and the additional Commission implementing act on documentary evidence expected by 31 August 2026. [eur-lex.europa.eu]

Sources

• Implementing Regulation (EU) 2026/1457 – EUR-Lex [eur-lex.europa.eu]
• Regulation (EU) 2026/1384 (Steel Regulation) – EUR-Lex [eur-lex.europa.eu]
• European Commission Factsheet – EU Steel Measure [policy.tra….europa.eu]
• European Commission Press Release, 7 October 2025 (proposal) [ec.europa.eu]
• Reed Smith Trade Compliance Hub, 26 June 2026 [tradecompl…rcehub.com]
• EUROMETAL – EU steel regulation and melt-and-pour, 26 June 2026 [eurometal.net]
• Eunews.it – New EU steel rules take effect, 30 June 2026 [eunews.it]
• Reuters via Global Banking & Finance, 30 June 2026 [globalbank…inance.com]