South Korea Faces Challenges with New EU Steel Tariff Proposal

The European Commission's proposal to cut tariff-free steel import quotas and impose a 50% duty could hinder South Korean steel exports. The EU, however, may consider FTA countries in allocation. South Korea plans discussions with the EU to safeguard its export interests amid existing challenges from high U.S. tariffs.

South Korea voiced concerns on Wednesday over the European Commission's latest proposal, which aims to drastically cut tariff-free quotas on steel imports and impose significant duties on excess shipments. The move is poised to adversely affect South Korean steel exports, a major contributor to the country's economy.

This proposal, targeting the protection of European steel manufacturers, would notably affect exports to the European Union. As the second-largest export destination for South Korean steelmakers, the EU's policy could reshape trade dynamics significantly, according to South Korea's industry ministry.

In response, South Korea is engaging with the EU, focusing on countries with existing free trade agreements. The nation hopes to negotiate favorable terms, and top trade officials are set to meet with EU representatives soon. Meanwhile, South Korean steel exports have already faced pressure from high U.S. tariffs.

(With inputs from agencies.)