The South Korean government, through its Ministry of Trade, Industry and Energy (MOTIE), has officially requested the European Commission to ensure fair treatment and preserve historical tariff-rate quota (TRQ) volumes for Korean steelmakers under the EU's newly adopted steel trade protection framework set to take effect on July 1, 2026. The revised EU system mandates a severe 47% reduction in global tariff-free import quotas to an annual ceiling of 18.3 million metric tons (mt), alongside doubling the punitive duty to 50% for any volumes exceeding specified limits. South Korea emphasized that its steelmakers, who heavily supply the European automotive and consumer appliance supply chains with high-end flat products, should not be unfairly penalized by anti-circumvention measures designed to target global overcapacity actors. The market impact indicates an escalating diplomatic and trade policy friction surrounding the EU's highly restrictive single market barriers.

The EU has formally adopted a new steel trade framework to replace the current safeguard system expiring July 1, 2026. Tariff-free import quotas are cut by ~47% to approximately 18.3 million tonnes per year, with above-quota tariffs doubled to 50%. A new "melt and pour" traceability rule is introduced to prevent circumvention. Industry groups welcomed the move but continue to call for lower energy costs and stronger industrial policy support.

The UK Business Secretary is set to meet the EU Trade Commissioner in Brussels, raising concerns over the EU's plan to cut duty-free steel import quotas for non-EU countries by 47% from 2024 levels, effective July 1. The move threatens UK steel exports significantly. Meanwhile, the EU steel association has pushed back against the UK's own quota reductions, with products including hot-rolled coil, tinplate, and rebar at risk. Both sides are tightening steel trade protections in response to Chinese competition and global overcapacity, but the quota adjustments risk deepening bilateral trade friction.

New Zealand’s Ministry of Business, Innovation and Employment (MBIE) has initiated a safeguard investigation into certain imported aluminum extrusion products and notified the WTO Safeguards Committee on May 28, 2026. The investigation covers aluminum alloy profiles, bars and rods produced through extrusion processes, including finished and unfinished products made from 1, 2, 3, 5, 6 and 7 series alloys. Products with anodized, painted and other surface treatments are also included. Imports from Australia and Singapore are excluded under existing free trade arrangements. Markets believe the move reflects growing global trade protection measures and could affect international aluminum extrusion trade flows.

[SMM Steel] Japan has initiated an anti-dumping investigation into imports of flat steel products, including hot-rolled and cold-rolled coils, strips, and sheets, from China, South Korea, and Taiwan. The probe, requested by major steelmakers such as Nippon Steel and JFE Steel, is expected to last one year. Japanese producers allege that imported products were sold at prices of up to 50% below fair market value, causing injury to the domestic industry. The move reflects growing concerns over global steel overcapacity and increasing trade protection measures across major steel-producing regions.

[SMM Steel] Brazil’s steel import quotas reached an average utilization rate of 60% as of May 20, up from 56% in late April, according to Siscomex data. The quota system, valid from February 24 to June 23, allows 445,469 mt of finished steel imports at regular tariff rates. Utilization rates reached 77% for Galvalume, 72% for zinc-coated steel, and 54% for CRC, while HRC quota usage remained relatively low at 18%. Imports exceeding quota volumes are subject to a 25% tariff. Market participants said Brazilian steelmakers continue pushing for stronger trade protection measures against imported steel.