EU announces plans to double steel tariffs to 50%, Korean steelmakers voice concerns
Published: 08 Oct. 2025, 15:05
Updated: 08 Oct. 2025, 16:54
![Steel products are piled up at Pyeongtaek Port in Gyeonggi on Aug. 26. [NEWS1]](https://koreajoongangdaily.joins.com/data/photo/2025/10/08/298d58a3-1384-436b-a077-f9adc60fb27c.jpg)
Steel products are piled up at Pyeongtaek Port in Gyeonggi on Aug. 26. [NEWS1]
Following the United States, the European Union (EU) announced plans to significantly tighten import restrictions on steel products by slashing tariff-free quotas and doubling the duty from 25 to 50 percent. The Korean government will respond by raising its concerns with the EU and preparing support measures for domestic steelmakers amid growing concerns over the impact on Korea's steel exports.
The EU unveiled on Tuesday a draft plan to implement a new tariff rate quota system to replace its existing steel safeguard mechanism.
Under the draft plan, the EU’s total steel import quota would shrink to 18.3 million tons — a 47 percent decrease from the 30.53 million tons set last year under the current safeguard measure. Steel imports exceeding the quota would be subject to a 50 percent tariff, double the current 25 percent.
The new system is expected to take effect at the end of June next year when the current safeguard measure expires, pending a vote by EU member states after undergoing the EU’s ordinary legislative procedure.
While the EU has not yet released quota allocations by country, the Ministry of Trade, Industry and Energy said the scale of the planned reduction suggests that Korea's steel exports to the EU could be significantly affected.
According to the Korea International Trade Association, Korea’s steel exports to the EU last year amounted to $4.48 billion. The EU and the United States — which imported $4.35 billion worth of Korean steel — were Korea’s two largest steel export markets.
![Trade Minister Yeo Han-koo speaks with Korean companies launched in Malaysia during a meeting held in Kuala Lumpur, Malaysia on Sept. 26. [MINISTRY OF TRADE, INDUSTRY AND ENERGY]](https://koreajoongangdaily.joins.com/data/photo/2025/10/08/4c57f86b-c242-4cf6-8ba7-d747b9481ca5.jpg)
Trade Minister Yeo Han-koo speaks with Korean companies launched in Malaysia during a meeting held in Kuala Lumpur, Malaysia on Sept. 26. [MINISTRY OF TRADE, INDUSTRY AND ENERGY]
Korea’s steel exports are already struggling. After the Trump administration imposed a steep increase in tariffs this year — replacing Korea’s 2.63-million-ton annual tariff-free quota with a 50 percent tariff — exports to the United States in May fell 12.4 percent on year. Declines continued in June, with a drop of 8.2 percent compared to the same month in 2024, followed by 3 percent in July and 15.4 percent in August.
Still, the ministry noted that the EU explicitly stated it would consider free trade agreements (FTA) when allocating national quotas. Korea, which has an FTA with the EU, plans to leverage that through bilateral consultations to protect its interests.
Trade Minister Yeo Han-koo is expected to meet with EU Trade Commissioner Maroš Šefčovič at a later date to express Korea’s concerns about the planned tariff rate system. Vice Trade Minister Moon Shin-hak will also visit steel export sites to hear directly from industry stakeholders.
The ministry will convene a public-private meeting on Friday, chaired by the director of the industrial supply chain policy, to discuss responses to the EU’s new measure, including a plan to upgrade Korea’s steel industry.
This article was originally written in Korean and translated by a bilingual reporter with the help of generative AI tools. It was then edited by a native English-speaking editor. All AI-assisted translations are reviewed and refined by our newsroom.
BY KIM JI-HYE [[email protected]]
with the Korea JoongAng Daily
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