EU halves duty-free steel quota but UK and other partners given better rate

The EU has halved the amount of duty-free steel it will accept from abroad, but has agreed to higher levels of imports for more than a dozen trading partners including Britain.The curbs are designed to reduce cheap Chinese steel coming into the bloc. However, 13 countries with a free trade agreement (FTA) with Brussels, including the UK, have had their quota reduced by just one-third.“The commission is putting in place the practical arrangements needed to ensure that the EU’s steel measure operates effectively from day one,” said the EU trade commissioner, Maroš Šefčovič.“We are providing market participants with predictability through clear and transparent quota distribution rules.”The new steel safeguards mark the biggest divergence in trade with the UK since Brexit in 2020 and match similar moves announced last week by the UK to reduce foreign imports and boost domestic industries.They were originally announced to slow down the use of Chinese products in European industries, particularly after trade was diverted from the US as a result of Donald Trump’s “liberation day” tariffs launched in April 2025.The EU said last year it planned to cut overall tariff-free imports from non-EU countries by 47% on 2024 levels from 1 July 2026 and double tariffs to 50% for all imports outside those quotas.However, it has struck deals with 12 specific countries with which it already has a FTA allowing them to sell between 66% and 67% of their historic trade on average. The allocations can be adjusted if necessary if there are shortages in supply in particular types of steel.The countries receiving better terms are the UK, Turkey, India, South Korea, Indonesia, Egypt, Brazil, Switzerland, North Macedonia, South Africa, Argentina, Ukraine and Singapore.There are 28 categories of product covered ranging from rolled steel used in the automotive industry to bars used in construction to reinforce concrete. The quotas allocated to the 12 countries with FTAs are “linked to past trade”, EU officials said.skip past newsletter promotionafter newsletter promotionThe UK steel industry has previously warned of “devastating” consequences from the EU’s planned quota system. The quotas are based on trade data from 2022 to 2024.The new rules quash hopes that the EU and the UK could forge a strategic “steel club” alliance under which they would give each other tariff-free trade and work together against China.Officials said they wanted to create a system that would solve problems for some countries without creating issues for others and still hoped to set up a steel club with the US and the UK to ringfence domestic markets from rivals who do not play by the rules.The quotas can be adjusted if shortages in supplies emerge, an official said.