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Photo courtesy of Yonhap News |
[Alpha Biz= Kim Jisun] The European Union has approved a sharp increase in tariffs on imported steel, raising duties from 25% to 50% while significantly cutting duty-free import quotas.
According to industry sources on May 20, the European Parliament passed the measure on May 19 with overwhelming support (606 in favor, 16 against). The revised rules will take effect in July following approval by member states, replacing the current safeguard measures.
Under the new framework, the annual tariff-free import quota will be reduced from 35 million tons to 18.3 million tons—nearly a 47% cut. The new quota level reflects the EU’s 2013 steel import volume, a benchmark the bloc views as more aligned with fair market conditions.
The policy is aimed at protecting Europe’s steel industry from global oversupply and subsidized low-cost imports, widely interpreted as targeting Chinese steel producers.
The move follows similar protectionist measures by the United States, which has already imposed 50% tariffs on steel imports, raising concerns about escalating trade barriers in key export markets.
For South Korean steelmakers, the impact will depend on how duty-free quotas are allocated by country in upcoming negotiations. However, with both the U.S. and EU tightening import restrictions, industry analysts warn that cost pressures and export challenges are likely to intensify.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
