The European Union is preparing to impose stricter safeguard measures on imported steel products in a bid to protect its industry from rising global overcapacity, which is expected to grow from 602 million mt in 2024 to 721 million mt by 2027.
Following the US protectionist measures, the EU’s decision represents a broader global trend of tightening steel trade policies to shield domestic producers from cheap imports, particularly from Asia, according to local South Korean media reports.
Impact on South Korean steel exports
As previously reported by SteelOrbis, starting from mid-2026, the EU’s new safeguard system will:
- Reduce tariff-free import quotas by 47 percent, and
- Double tariffs from 25 percent to 50 percent.
This change is expected to significantly affect South Korea’s steel exports to the EU, which is its second-largest overseas market after the US.
In 2024, South Korea exported around $4.48 billion worth of steel to the EU, exceeding its exports to the US worth around $2.62 billion.
Seoul seeks diplomatic solutions
The South Korean government has pledged to actively present its position and support domestic producers in adapting to the new trade landscape.
The ministry of trade, industry and energy (MOTIE) stated that it welcomes the EU’s intention to consider free trade agreement (FTA) partners in quota allocations. “We are a signatory to the FTA, a contributor to the supply chain, and a partner developing low-carbon steel, so we need to provide some consideration in that regard,” the ministry said.
Bilateral talks to protect interests
MOTIE emphasized that Seoul will maximize its interests through bilateral consultations with Brussels.
South Korean trade Minister Yeo Han-koo is expected to meet EU Trade Commissioner Maroš Šefčovič in the coming days to outline South Korea’s concerns and urge adjustments to safeguard allocations in favor of FTA partners.