On May 19, 2026, the European Parliament approved new regulations on steel import controls by a vote of 606 to 16; the regulations will officially take effect on July 1. The new policy slashes the annual duty-free steel quota by 47% from 33 million metric tons to approximately 18.3 million metric tons, while doubling the import tariff on excess volumes from 25% to 50%. At the same time, it fully introduces the "melt and pour" rules of origin with traceability requirements， closing loopholes for tax avoidance through transshipment via third countries and simple processing under private labels, thereby significantly tightening the EU’s steel import controls.

The European Steel Association has welcomed the move, stating that it will help tackle global overcapacity and protect local jobs. However, ten downstream manufacturing associations representing sectors such as the automotive, machinery and packaging industries have strongly opposed the policy, warning that the new measures will impose additional tariff costs of between €5 billion and €9 billion annually on downstream companies, with prices for certain steel products potentially rising by as much as 30 per cent, posing a serious threat to the competitiveness of European manufacturing.

Industry insiders point out that the EU is shifting from ‘temporary defensive measures’ to ‘permanent institutional barriers’, which, combined with the Carbon Border Adjustment Mechanism, creates a multi-layered regulatory framework. For exporting companies, the low-cost, extensive business model is no longer sustainable; only by accelerating market diversification, shifting towards high-end, differentiated products, and ensuring their overseas supply chains comply with regulations will they be able to survive the next round of industry consolidation.