Global Daily Tax News, EU Lawmakers Agree To Double Tax On Foreign Steel, (May 21, 2026)

The European Parliament has signed off on a package of measures intended to protect the EU steel market.

The proposed measures will reduce import quotas and increase customs duties, replacing measures due to expire on June 30, 2026.

The newly approved regulation will introduce lower import quotas by limiting tariff-free import volumes to 18.3 million tonnes annually, a 47 percent reduction compared with 2024 steel quotas. It also provides for a 50 percent customs duty (instead of the current 25 percent) for imports above the quota and to steel goods not covered by it.

The European Parliament agreed that Ukraine's situation as a candidate country with special security concerns should be considered when allocating country quotas.

The regulation introduces a "melt and pour" rule, under which the origin of steel is determined by where it is first melted and cast, strengthening traceability and limiting circumvention through minimal processing in third countries.

The new regulation, which was already agreed between Parliament and Council negotiators, was approved by 606 votes in favor and 16 against, with 39 abstentions.

Following approval from the EU Council, the new regulation will enter into force on July 1, 2026.