Europe’s steel fortress

A steel tariff shock has landed, this time from the European Union. On Oct. 7, the European Commission unveiled a sweeping plan to halve duty-free quotas on steel imports and double the tariff on excess volumes from 25 to 50 percent.

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The EU’s move confirms that protectionism is back in fashion. For South Korea, the second-largest supplier to Europe after China, it closes off one of its key open markets. After Washington's tariff surge earlier this year, the EU’s move tightens the squeeze. The new plan will replace the current safeguard system when it expires next June. Global tariff-free quotas will shrink from roughly 30.5 million metric tons to 18.3 million tons, and any imports beyond that will face a punitive 5O percent duty. Member states are expected to ratify the proposal within months, and early implementation has not been ruled out. Brussels insists that national allocations will remain subject to negotiation and that free trade partners could enjoy flexibility. In practice, shrinking quotas leave every exporter fighting for a smalle