The European Parliament has approved new measures aimed at protecting the European steel market from rising global overcapacity, tightening import controls and introducing stricter trade measures ahead of the expiry of the current safeguard regime in June 2026.

According to the European Parliament release, the new framework seeks to address the negative trade-related effects of global overcapacity, while supporting the competitiveness of the EU steel industry amid growing pressure from rising imports and weakening market conditions.

Under the approved measures, tariff-free steel import quotas into the European Union will be reduced significantly. Imports exceeding the quotas will face higher customs duties, with lawmakers approving an increase in safeguard tariffs from 25% to 50%.
The measures are expected to come into effect from July 1, 2026, replacing the existing safeguard mechanism.
The European Parliament stated that the move is intended to ensure the survival and resilience of the EU steel sector as global overcapacity continues to weigh on markets. Discussions around the framework also reflected concerns around trade diversion, industrial competitiveness, and the strategic importance of maintaining domestic steelmaking capacity in Europe.
The authority also highlighted the need for stronger traceability and monitoring of steel imports under the new framework. Lawmakers argued that tighter controls would help prevent circumvention of trade measures and ensure fair competition within the European market.
The approved framework forms part of a broader push by European policymakers to strengthen industrial resilience and reduce exposure to market distortions linked to excess global steel capacity.

The development is also being closely watched by major steel-producing and exporting countries, including India. The European Union has historically remained an important destination for Indian steel exports, particularly for finished and value-added steel products, with industry estimates indicating that the EU accounted for nearly 45% of India’s steel exports in 2024.
Recent Indian steel market data has reflected shifting trade dynamics. India turned into a marginal net exporter of finished steel in 2025-26, with exports standing at 6.6 million tonnes compared to imports of 6.5 million tonnes. Total exports of iron and steel stood at 8.3 million tonnes in 2025-26, increasing by 32% over the previous fiscal, while finished steel imports declined by nearly 32% year-on-year. 
The monthly steel update further noted that “the rising exports coupled with declining imports reflect strong domestic momentum and bodes well towards achieving self-reliance in a core industrial sector like steel.” 
India’s crude steel production increased to 169.2 million tonnes in 2025-26, up 11.2% year-on-year, while finished steel production rose by 10.3% to 161.7 million tonnes. Consumption of finished steel also grew 7.9% during the period. 

The Indian steel market has simultaneously been navigating supply-side pressures linked to global disruptions. The May 2026 steel update highlighted that disruptions in sourcing of key inputs such as LNG, limestone and coking coal had affected production in recent months, while geopolitical frictions in West Asia had increased uncertainty around steel demand and margins.