Taiwan will implement strict export controls on 463 steel products across nine categories starting July 24, 2026. The Ministry of Economic Affairs announced the restrictions to prevent foreign goods from exploiting Taiwan’s exclusive European Union tariff-rate quotas. Free trade zones are also covered to stop non-Taiwanese steel from transshipping into the EU under Taiwanese identity.

The strategy responds to updated EU safeguard regulations launched on July 1. Under these rules, Taiwanese steel imports within set quotas enter duty-free, but excess volumes face a 50% tariff. Because the EU slashed multiple product quotas by over half, local authorities established a mechanism to secure legitimate domestic shipments.

The new framework divides the country's volume into performance-based quotas, allocated via 2022-2024 export records, and free-application quotas. Exporters must obtain a pre-clearance certificate of origin from the steel association before shipping. Businesses can still export above quota limits if European buyers agree to pay the 50% penalty, but the government will deduct their future quotas and block subsequent applications if this action consumes the national allocation.

Steel manufacturers say that these rules change European trade into a competition managed by origin verifications, carbon costs, and strict market resources.