The European Parliament approved a new regulation to protect its domestic steel market from global steel overproduction, passing the measure with 606 votes in favor.

Entering into force on July 1, 2026, the policy replaces expiring 2018 safeguards and slashes tariff-free imports to 18.3 million tons annually. Additionally, a 50% customs duty, up from the previous 25%, will apply to any imports exceeding these limits.

Crucial to the EU’s defense capabilities, the strategic steel sector will gain stricter traceability through a "melt and pour" origin rule to prevent third-country circumvention.

Lead negotiator Karin Karlsbro said that candidate country Ukraine will receive special status and protective exemptions, as its steel industry faces direct attacks and does not cause global overcapacity.

The Council now has to formally approve the regulation.