05/26/2026
The European Union is taking a major step to strengthen its steel trade defenses.
The European Parliament has officially approved stricter steel import regulations effective July 1, 2026, introducing the new “melt and pour” rule of origin for steel products.
Under this rule, the country of origin will now be determined by where the steel is first melted and poured — a significant move aimed at preventing transshipment and relabeling through third countries to obtain preferential tariff treatment.
Key changes include:
• A 47% reduction in import quotas compared to 2024 levels
• Duty-free imports capped at 18.3 million tonnes annually
• A 50% tariff on imports exceeding the quota threshold
The measure is part of the EU’s broader strategy to address global steel overcapacity and reinforce fair trade practices, particularly in response to increasing import volumes linked to China.
This development will likely have major implications for:
✔ Rules of origin compliance
✔ Global steel supply chains
✔ Trade and customs strategies
✔ European industrial policy
Companies involved in steel manufacturing, sourcing, and international logistics should closely monitor these changes as they may impact procurement structures, routing decisions, and customs declarations moving forward.
Source:
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