The EU Council has laid out its negotiating stance for a new steel overcapacity regulation, aiming to replace existing safeguard measures before their June 2026 expiration. The mandate seeks a dual objective: strengthening trade protections for European steel producers while incorporating greater flexibility and specific safeguards for downstream steel users.

Main elements include a sharp reduction in annual duty-free import quotas to 18.3 million tonnes, alongside raising the out-of-quota tariff to 50%. A pivotal change is the strengthened Union interest principle, obliging the Commission to weigh impacts on downstream industries more explicitly. 

The Council also introduced increased quota flexibility and a phased implementation of new melt-and-pour origin rules to prevent circumvention. 

Formal stakeholder consultations will begin by October 1, 2026, with a full review of the regulation's effects required within four years.