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SEOUL, October 08 (AJP) -South Korea’s government and steelmakers are rushing to respond to the European Union’s latest protectionist move on steel imports, which adds to the heavy tariffs already imposed by the United States on steel and aluminum.
The EU has issued a new set of barriers that halve import quotas and double tariffs beyond those limits, the Ministry of Trade, Industry and Energy said Tuesday.
Under the European Commission’s proposed tariff-rate quota (TRQ) scheme, which would replace the current safeguard mechanism, the global duty-free quota for imported steel will be cut from 30.53 million tons to 18.3 million tons, a 47 percent reduction. Imports exceeding the quota will face tariffs raised from 25 percent to 50 percent.
The EU will also introduce a “melt-and-pour” standard requiring proof of the origin of steel production, aimed at blocking indirect exports through third countries.
Pending legislative approval, the new TRQ system will take effect at the end of 2026 at the latest, when the current safeguards expire.
Individual country quotas will be negotiated separately, affecting non-EU exporters such as South Korea, which shipped about 3.8 million tons of steel to the EU last year, 2.63 million tons under the quota and the rest via the global quota.
The measure poses a double blow to Korean steel, aluminum, and downstream exporters already facing 50 percent tariffs in the U.S. market.
Korea’s steel exports to the EU totaled $4.48 billion last year, nearly matching the $4.35 billion shipped to the United States, according to the Korea International Trade Association.
Korean steel exports have been sliding since a 12.4 percent year-on-year drop in May, with a cumulative decline of 15.4 percent by August.
The EU has pledged possible relief for countries with free trade agreements, and the Korean government plans to leverage its FTA to secure the largest possible quota share.
“The EU has indicated it will consider free-trade relationships when allocating quotas,” the ministry said.
Trade Minister Yeon Han-koo is expected to meet Maros Sefcovic, the EU’s executive vice president for trade, to argue Korea’s case after consultations with domestic steelmakers.
The government, major producers such as POSCO and Hyundai Steel, and industry associations will convene Friday to discuss coordinated countermeasures.
* This article, published by Aju Business Daily, was translated by AI and edited by AJP.
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