This Week in Manufacturing — Brussels (#25, 2026)
EU, US reach deal adjusting tariffs; new steel import quotas applied; reforms for e-commerce customs duties now in force; PET bottle recycling rules updated; grid permitting procedures accelerated.
June 28, 2026 to July 04, 2026
EU, US reach deal adjusting tariffs; new steel import quotas applied; reforms for e-commerce customs duties now in force; PET bottle recycling rules updated; grid permitting procedures accelerated.
📋 In This Week's Newsletter
• 🇪🇺 European Commission
• ⚖️ EU Legislation
• 🤝 EU Council
• ✒️ EP Committee Work
• 📚 What We're Reading This Week
European Commission
Commission confirms €2.5 billion in EU ETS revenues allocated to modernise energy in 11 Member States
The European Commission and the European Investment Bank announced on 1 July 2026 the disbursement of €2.5 billion from the Modernisation Fund, sourced from the EU Emissions Trading System (EU ETS), for energy projects in 11 EU Member States. The total funding mobilised from the Modernisation Fund since January 2021 now stands at €23.2 billion. Beneficiary states include Czechia, Estonia, Greece, Croatia, Latvia, Lithuania, Hungary, Poland, Portugal, Romania, and Slovenia. The latest funding will allow 51 projects focused on energy efficiency, decarbonisation, district heating, renewable deployment, and grid modernisation. The Commission set the next application deadlines for August and September 2026, following the instrument’s procedures for priority and non-priority investments.
New rules to protect EU steel sector from global overcapacity take effect
A regulation protecting the EU steel industry from impacts of global overcapacity entered into effect on 1 July 2026. The implementing regulation now establishes reduced tariff-free quotas (18.3 million tonnes) and a 50% out-of-quota tariff for 26 steel product categories, following the expiry of previous safeguards. The quota allocation methodology privileges Free Trade Agreement partners—who retain a higher market share than the average 47% quota reduction mandated by the Steel Regulation—and reflects outcomes from WTO Article XXVIII negotiations. The regulation also introduces traceability requirements ('melt & pour') and will be re-submitted to the Member State committee before end of year. President Ursula von der Leyen has recognised steel as strategic for EU competitiveness.
Commission details application of temporary €3 e-commerce customs duty
From 1 July 2026, a €3 customs duty per item applies to low-value e-commerce consignments up to €150, following Council Regulation from February 2026. This transitional measure replaces the previous de minimis exemption and will last until July 2028, after which standard tariff rules apply. The Commission clarified that the new duty is payable by platforms or declaring businesses, not consumers. From November 2026, declaration of product identifiers will become mandatory. Revenue from the duty is allocated 75% to the EU budget, 25% to Member States. Anti-abuse provisions are included to counter avoidance tactics. The measure is part of the broader EU Customs Reform.
Commission and Türkiye hold High-Level Economic Dialogue
The EU-Türkiye High-Level Economic Dialogue convened in İstanbul on 2 July 2026, co-chaired by Commissioner Valdis Dombrovskis and Minister Mehmet Şimşek. Parties reviewed economic and monetary policy, reforms for price and financial stability, and Türkiye's efforts to join the Single Euro Payments Area (SEPA). International Financial Institution participation included the EIB and EBRD. The Dialogue acknowledged increased EIB engagement in Turkish clean energy projects and recorded EBRD investment volumes for 2025 at €2.7 billion. Emphasis was placed on competition, economic connectivity, business environment, and continued collaboration in essential sectors.
Commission greenlights Belgium and Portugal NextGenerationEU payment requests
On 1 July 2026, Belgium's fourth payment request (€567 million) and Portugal's ninth payment request (€2.32 billion) under the Recovery and Resilience Facility were positively assessed by the Commission. For Belgium, 16 milestones and 11 targets in areas such as grid restoration and streamlined energy project permitting were completed. Portugal met 22 milestones and 29 targets on vocational training, waste management, and business capitalisation. Payment is subject to opinion by the Economic and Financial Committee. Belgium has now disbursed 69%, and Portugal 78%, of their allocated funds.
Commission clarifies methodology for recycled content in plastic beverage bottles
The Commission adopted new rules on 29 June 2026 to calculate, verify, and report chemically recycled content in single-use PET bottles. Addressing requirements from the December 2025 plastics package and the Single-Use Plastics Directive, the methodology covers mechanical and chemical recycling. Only plastics recycled in the EU or EEA will count until November 2027, when material from OECD or qualifying third countries may also be included. The Implementing Act will be published shortly and will enter into force 20 days after publication, ensuring harmonised reporting and compliance across Member States.
EU Legislation (Official Journal)
Regulation (EU) 2026/1455: Adjustment of customs duties on imports from the United States
Regulation (EU) 2026/1455 of 25 June 2026 establishes new tariff quotas and suspends certain customs duties on goods from the United States, effective from 1 July 2026 to 31 December 2029. The act forms part of the transatlantic agreement reached on 27 July 2025, implementing reciprocal market access in industrial, agricultural, and seafood sectors. It allows for recourse to safeguard measures or suspension should the US not uphold its commitments. Steel and aluminium remain subject to higher duties unless further agreement is reached.
Commission Implementing Regulation (EU) 2026/1457: Distribution of steel tariff quotas
On 29 June 2026, Implementing Regulation (EU) 2026/1457 assigns country-specific and residual quotas for 26 categories of steel products per the Steel Regulation (EU) 2026/1384. Quotas, totaling 18,345,922 tonnes annually, are split between Free Trade Agreement (FTA) and Most Favoured Nation (MFN) partners using trade data from 2022-2024. The regulation covers operational details for importers, including the allocation of residual and country-specific quotas, with special arrangements for Ukraine and Northern Ireland.
Commission Implementing Decision (EU) 2026/1425: New rules for recycled plastic calculation in PET bottles
On 30 June 2026, Decision (EU) 2026/1425 lays out harmonised rules for calculating, verifying, and reporting recycled plastic content in single-use PET beverage bottles, replacing Decision (EU) 2023/2683. The Decision details definitions, methodologies for mass balance accounting, and third-country criteria, in line with the Single-Use Plastics Directive and recent waste shipment regulations.
Commission Implementing Regulation (EU) 2026/1412: Revised ETS benchmarks for free allocation of emission allowances (2026-2030)
Commission Implementing Regulation (EU) 2026/1412 revises ETS benchmark values used to allocate free emission allowances in 2026–2030 under Article 10a(2) of Directive 2003/87/EC. Updates reflect efficiency data for 2021-2022 and the latest amending directives, covering 54 industry benchmarks relevant to manufacturing and processing sectors.
EU Council
Competitiveness Council: Informal meeting of ministers responsible for Internal Market and Industry scheduled
EU Competitiveness Council ministers will meet informally on 9 July 2026 to discuss policy files relevant to internal market and industry. The agenda includes coordination among Member States and preparations for ongoing legislative priorities in the Irish Presidency.
EP Committee Work
ITRE Committee: Report on accelerating permit-granting procedures for energy infrastructure
On 3 July 2026, the ITRE committee adopted a report on a proposed directive to amend Directives (EU) 2018/2001, 2019/944, and 2024/1788, with a focus on faster permitting for electricity grids, renewable energy, storage facilities and recharging stations. Rapporteur Niels Fuglsang (S&D, Denmark) oversaw the draft, which introduces shorter deadlines for permits, digital application portals, and new rules for grid connection. The report reflects amendments facilitating the EU grids package and aligns with broader energy transition and electrification objectives.
What We're Reading This Week
- Proposed Chips Act 2.0 fortifies Europe’s electronics ecosystem: New legislation aims to boost Europe's semiconductor production and supply chain resilience amid global tech competition.
- Europe’s industrial wake-up call: European leaders push for renewed industrial strategy amid concerns over competitiveness and reliance on foreign suppliers.
