EU reduces duty-free steel quotas for close trading partners by 33%: how much Ukraine will be allowed to import

The European Union will reserve half of its steel quotas for countries that have free trade agreements, as part of new measures designed to protect local industry from imports, mainly from China, UNN reports citing Bloomberg.

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The EU's priority partners will be able to jointly import 9.15 million tons of steel under a duty-free regime that takes effect on Wednesday. This means these countries will supply 33% less steel to the bloc without duties, according to an EU official's estimate.

An additional 9.15 million tons will be distributed among the remaining countries, including those with free trade agreements, according to a statement by the European Commission, the EU's executive body, published on Tuesday.

This step is aimed at protecting the EU's steel industry from an influx of subsidized steel imports at below-market prices, which often come from China. The new rules introduce a 50% tariff on steel imports after quotas are exhausted — double the 25% rate adopted in 2018.

The updated quota of 18.3 million tons is a 47% reduction compared to the previous level.

Country-specific quota levels were allocated based on market share from 2022 to 2024, although officials said negotiations with partners were challenging. Additionally, the EU considered diversifying supply for the bloc's end consumers.

While the EU faces a similar problem in other sectors, such as the chemical industry, an EU official said the bloc is not considering similar steps for those industries.

The European Commission argued that this step was prepared in accordance with World Trade Organization rules.

An EU official said that the United States, which does not have a free trade agreement with the bloc, will not take retaliatory measures, given that it is also trying to address the problem of steel overproduction in China. Other partners, such as the United Kingdom, have developed similar measures in response.

Overall, according to EU officials, the European Commission has reached an agreement in principle with 13 countries on quotas covering about 70% of its steel trade. These countries include Brazil, India, Indonesia, South Korea, Switzerland, Turkey, the United Kingdom, and Ukraine.

Each of them was satisfied with the compensation proposed by Brussels for trade losses and ruled out retaliatory measures, EU officials said. Other negotiations are ongoing.

As for Ukraine, the EU will allow duty-free entry of 70% of its typical steel volumes into the bloc, given Russia's ongoing war against the country,

EU proposes to double tariff rate on steel imports to 50% - Bloomberg02.10.25, 14:07 • 3395 views

"Ukraine should receive more favorable terms from the preferential allocation of tariff quotas than other free trade agreement partners," the text of the relevant European Commission implementing regulation states.