Following the United States, the European Union (EU) also signaled it will sharply raise the tariff applied to imported steel from the current 25% to 50%. The duty-free benefits for imported steel are also set to be drastically reduced. As a result, Korean steel appears likely to take a direct hit.
Stéphane Séjourné, the EU executive vice president for prosperity and industrial strategy, said on the 7th (local time) on X (formerly Twitter), "To protect Europe's steel plants and jobs, we will cut the (duty-free) quotas for imported steel by half."
He added, "The tariff will be doubled, rising from the current 25% to 50%."
The new plan he previewed is a new regulation to replace the steel safeguard currently in effect.
Under the existing safeguard, which the EU has implemented since 2018 in response to the Trump administration's steel tariffs, imports are allowed duty-free up to country-specific quota levels, with a 25% tariff imposed on volumes exceeding the quota. Under World Trade Organization (WTO) rules, the EU must "mandatorily terminate" this safeguard at the end of June next year.
However, the Commission has argued that trade-restrictive measures remain necessary to protect Europe's steel industry and that stronger steps are needed.
The implementation timing of the newly announced plan is fluid and must go through a separate legislative process. At the latest, it is expected to take full effect before June next year, when the safeguard ends.
If the measure becomes reality, Korean steel is also expected to take a direct hit.
According to the Korea International Trade Association (KITA), last year Korea's steel exports to the EU (based on MTI 61) totaled $4.48 billion (about 6.2836 trillion won), slightly higher than the United States ($4.347 billion), which is the No. 1 export market by single country.
Unlike the United States, which imposes a 50% tariff on all items, the EU has a quota system, creating some differences; however, if import quotas are drastically reduced, the burden on Korean corporations will inevitably grow. Earlier, on the 4th as well, the EU reduced some steel safeguard volumes, and Korea's quotas had already fallen by up to 14%.