The European Union's new steel quota regime, in force from 1 July 2026, cuts duty-free import volumes by 47% and raises out-of-quota tariffs to 50%. Turkey's steel industry faces annual export revenue losses estimated at between two and three billion US dollars. Turkey's quota allocation is set at around 2.1 million metric tons, far below its historical export levels. Negotiations between Turkey and the European Commission are ongoing, as the industry simultaneously faces surging Chinese steel imports in its domestic market.