IN LONDON: Philippe Heeren, Reed Smith Brussels-based regulatory partner, says the EU’s proposed ‘melt-and-pour’ outcome, as part of the new steel import measures, could pose a specific risk for UK exports.
“UK-manufactured steel products from imported materials that were originally melted and poured in another country may not qualify for a UK-specific quota,” Heeren says.
According to the European Parliament, the EU steel industry has been facing trade-related challenges, including significant and sustained import pressure in terms of volume and price.
The global steel safeguards that have been in place since 2018 under the WTO Agreement on Safeguards will expire on 30 June 2026.
On 19 March 2026, the UK Government announced a new steel trade measure, taking effect from 1 July 2026. The federal government will limit tariff-free steel imports, reducing overall quota volumes by 60% compared to the steel safeguard measure.
Any imports above these levels will then face a 50% tariff. The measure will apply to imports of steel products that can also be made in the UK.
The European Commission’s melt-and-pour proposal serves as a transparency and traceability obligation. Under this proposal, importers will be required to identify the country where steel was originally melted and poured.
Heeren notes, however, that the European Parliament proposed that the country of melt and pour shall directly determine quota allocation, which would disrupt existing supply chains built around further processing in third countries.
“Even the council’s middle ground — a mandatory review within two years on whether melt and pour should become the basis for allocation — signals that this shift may be a matter of ‘when’ rather than ‘if’,” he says.
“Importers should begin mapping melt-and-pour origins across their product portfolios now and consider embedding documentary-evidence clauses in supply contracts to ensure they can comply with whichever outcome emerges.”
A significant experiment
This news comes after the EU’s steel exports to the US fell by 30% in H2 2025, compared to the same period in 2024, following the imposition of 50% tariffs, as previously reported.
Eurofer, Europe’s steel association, says the figures highlight the need for any EU-US trade agreement to be fair, balanced, and enforceable. Upcoming discussions on the EU-US trade agreement are due to take place at the European Parliament’s International Trade Committee on 24 February 2026.
Heeren says the UK benefits from a country-specific quota allocation for certain product categories under the current EU steel safeguard.
“This is a structural tightening, not a marginal adjustment,” Heeren says.
“Importers should expect significantly more shipments to fall outside of quota limits, triggering the higher duty rate.”
Heeren notes that building dual landed-cost models for Q3 and Q4 2025 onward is essential, as the financial gap between the two scenarios will be substantial.
“The council’s proposed floor and ceiling for total quota volumes also mean future adjustments via delegated acts could either modestly ease or further tighten access depending on market conditions,” he says.
“The new regime represents a significant experiment.”
This is due to the tariff-rate quota measures being no longer classified as safeguards and rather as tariffs — any anti-dumping and countervailing duties would apply on top of them.
Heeren adds that when combined with the impact of the carbon border adjustment mechanism, the cumulative cost burden on importers would be substantial and likely disruptive.
“It remains to be seen how these new measures can be reconciled with the existing Trade and Cooperation Agreement between the UK and the EU, and what any non-specific treatment for the UK would mean politically,” the regulatory partner says.
Domestic steelmaking is considered essential to the resilience and security of the UK’s critical national infrastructure and defence supply chains.
The UK Government reports the difference between global steel capacity and demand is rising and is expected to reach 721 million tonnes by 2027. This figure amounts to 13% more than the current total production capacity.
Steel is a versatile industrial material, with thousands of different grades and types of steel developed by the industry making the modern world possible.
Write to Aaliyah Rogan at Mining.com.au
Images: Unsplash & Adobe Stock
