China is set to face the most significant impact from new steel quotas implemented by the European Commission, which aim to slash the bloc’s total steel imports by 47 percent. Under the new policy, the EU is prioritizing nations that maintain existing trade pacts with the bloc.
As of Tuesday, 30 June, the commission announced that the annual import quota of 18.3 million tonnes, effective from 1 July, will be split into two segments. Half of this volume is reserved exclusively for countries with preferential trading (FTA) status, while the remaining half will be open to all global partners without discrimination. This structure disproportionately affects China, which provided 9.9 percent of the EU’s steel imports in 2025 but lacks a formal trade agreement with the union.
Conversely, 13 countries currently holding trade agreements with Brussels—including leading exporters Turkey and South Korea, which accounted for 17.2 percent and 11.5 percent of imports respectively—will see their specific quotas reduced by only one-third. Other beneficiaries of this arrangement include the UK, India, Indonesia, Egypt, Brazil, Switzerland, North Macedonia, South Africa, Ukraine, and Singapore.
EU trade commissioner Maroš Šefčovič stated that the commission is establishing the necessary practical arrangements to ensure these measures function effectively immediately. The 18-million-tonne ceiling is intended to safeguard the European steel industry from chronic global oversupply, which is largely attributed to China. Any imports exceeding these established quotas will be subject to 50-percent duties, a significant increase from the previous 25-percent rate.
Officials emphasize that global steel supply currently exceeds 620 million tonnes and is projected to reach 721 million tonnes, a volume more than five times the EU’s annual consumption. The European steel sector, which supports 293,000 jobs and carries a value of €152bn, is currently operating at only 67 percent capacity; the commission aims to raise this figure to 80 percent through the new controls. The UK, which is currently nationalizing British Steel, is simultaneously engaging in discussions with Chinese commerce minister Weng Wentao regarding steel duties.
Steel remains a contentious issue in the EU’s broader trade relations, particularly with the United States. Following the imposition of 50-percent tariffs on EU steel by President Donald Trump, EU exports to the US declined by 34 percent last year. The EU continues to demand the removal of these tariffs as part of a trade agreement approved by lawmakers this June, which imposes a 15-percent tariff on most European exports.
