Brussels, July 1 – The European Union’s new steel overcapacity regulation formally took effect on July 1, replacing the previous temporary safeguard measures implemented since 2018. Under the new rule, the total annual tariff-free import quota for steel products from non-EU nations is reduced sharply to 18.35 million tonnes. Any steel cargo exceeding the allocated quotas will face a punitive tariff of 50%, doubled from the former 25% rate.

       One of the most influential updates is the newly added “melt-and-pour” origin verification mechanism. Importers are required to provide documents proving where the initial melting and casting of steel takes place. The policy aims to block transshipment practices, in which exporters reroute steel via third countries to evade quota limits. European Commission officials stated the framework will remain valid until 2031, supporting local steelmakers to raise capacity utilization and invest in low-carbon transformation. Global steel traders have begun adjusting export schedules and exploring alternative markets to mitigate export risks to Europe.