As US tariffs reroute Chinese goods toward Europe, the EU is tightening rules on steel, electric cars and low-value parcels — but remains split over how protectionist to become, with stakes that land squarely on Luxembourg.
On 8 June 2026 EU ministers gave final approval to a regulation that slashes tariff-free steel imports by 47% and doubles the out-of-quota duty to 50%, replacing the safeguard that expires on 30 June. The measure is aimed squarely at a flood of cheap, subsidised steel linked to Chinese overcapacity. For Luxembourg, home to ArcelorMittal's headquarters and 3,520 steelworkers, the rules will help decide whether the LUX2029 restructuring deal stabilises the country's industrial anchor.