EU tariff plan deals additional blow to Korean steelmakers

The European Union’s plan to introduce stronger tariff measures on imported steel is likely to deal a critical blow to Korean steelmakers, already reeling from increased duties imposed by the U.S. If the European tariff plan takes effect as proposed, Korean steelmakers are expected to face major challenges in their two largest markets. Seoul, which remains in a dispute with Washington over tariffs on key sectors including steel, now faces the additional task of negotiating with the EU to mitigate the impacts to domestic businesses. Calling it a safeguard measure to protect its steel industry, the European Commission on Tuesday (local time) proposed cutting tariff-free steel import quotas by almost half to 18.3 million tons, along with a doubling of the out-of-quota duty to 50 percent. The proposal is awaiting approval from the European Parliament and EU governments before it takes effect. According to the Korea International Trade Association (KITA), Korea last year exported 3.93 million tons of steel worth $4.48 billion to EU nations. The figure tops the country’s global steel mark