New EU Tariff Rate Quotas: Significant Reduction in Duty-Free Quotas and Impact on the Steel Tube Market

On 1 July 2026, the new Regulation (EU) No. 2026/1384 entered into force, introducing a major revision of the European tariff rate quota (TRQ) system for a wide range of steel products. The final country-specific quota allocations, published by the European Commission only on 30 June 2026, confirm a substantial reduction in duty-free quotas for key exporting countries, including India, China, Taiwan, Türkiye and other strategic markets.

The most significant impact concerns the welded tube sector. Based on import volumes recorded over the past two years, the newly available quotas are expected to be fully exhausted within just a few days of the opening of each quarterly allocation period. Once the quotas have been exhausted, subsequent imports will be subject to the 50% safeguard duty, with inevitable consequences for procurement costs.

A similar situation affects seamless tubes. In particular, Indian producers, which already faced limited quota availability under the previous system, are now confronted with an even greater reduction in duty-free quotas, leaving only negligible volumes available. As a result, sourcing seamless tubes from outside the European Union without incurring additional safeguard duties will become increasingly challenging.

The implementation of the new system has also been affected by the late publication of the operational rules, issued only a few hours before the beginning of the new quota period. This has created considerable uncertainty and operational difficulties for market participants. Furthermore, the European Commission introduced emergency measures to temporarily suspend the allocation of tariff rate quotas during the first hours of application, adding further uncertainty for importers, distributors and end users.

In this evolving regulatory environment, Tecnica Tre continues to closely monitor legislative developments and the utilisation of tariff rate quotas, providing customers with timely information and practical support in planning their procurement strategies. In an increasingly dynamic market shaped by frequent regulatory changes, access to reliable and up-to-date information is essential for making informed purchasing decisions.