[EU consults on steel regulation scope, posing new compliance risks for Vietnam]

Published: Aug 5, 2026 17:24

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The European Commission has launched a consultation on expanding the scope of its 2026 Steel Regulation, which cuts duty-free steel import quotas to 18.3 million mt/year, nearly 47% below 2024 levels, and raises the out-of-quota tariff to 50%. The regulation also introduces “melt and pour” traceability, requiring importers to identify where steel was originally melted and cast. The consultation considers adding four product groups, including stainless steel wire, steel wire, cast iron pipes and forged steel bars, and will remain open until September 30, 2026. The new rules could pose challenges for Vietnamese exporters using imported billets or hot-rolled steel, as products may be counted under the raw material’s country of origin rather than Vietnam. Vietnam’s steel exports to the EU already fell 18.3% in volume and 23.3% in value year on year in the first five months of 2026. Exporters, particularly those in stainless steel wire and steel pipes, are advised to closely monitor the consultation and engage with EU importers and industry associations.

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