The European Union (EU) will cut the duty-free quota for Korean steel by 19.7%, from 2.58 million tons (t) to 2.073 million t, the Ministry of Trade, Industry and Resources said on the 30th. Last year, Korea exported 3.24 million t of steel to the EU. A 50% tariff will be imposed on volumes exceeding the duty-free quota.
The Ministry of Trade, Industry and Resources said the European Commission announced the operating plan for a new steel measure replacing the existing steel safeguard and released country-by-country steel quota volumes. Since 2018, the EU has set duty-free import limits by item.
Earlier, the European Parliament decided to cut the annual duty-free import allocation from 35 million t to 18.3 million t starting in the second half, a 48% reduction, and to raise the tariff on volumes exceeding that from 25% to 50%. The move aims to block a flood of low-priced steel products, displaced by the United States' higher steel tariffs, from pouring into the European market.
Korea exported 3.24 million tons to the EU out of 28.25 million tons of steel exports last year. The EU is the No. 2 export destination. Korea's dedicated duty-free quota was 2.58 million t, or 80% of total export volume.
Starting tomorrow, Korea's dedicated duty-free quota will be reduced to 2.073 million t from the previous level. Based on last year's export volume, that is about 64%. The tariff on volumes exceeding the duty-free quota will rise from 25% to 50%. A senior official at the Ministry of Trade and Industry (MOTI) said, "While the EU's overall duty-free quota decreased by an average of 46%, we defended as much as possible, with Korea's dedicated quota down 19.7%."