|Title||Korean steelmakers face more trade barriers amid tariff war|
The European Union will impose temporary 25-percent tariff on 23 steel products made outside the EU in tit-for-tat action against earlier move by the United States, further capping overseas revenue for Korean steelmakers.
The European Commission announced on Wednesday (local time) that it will impose tariffs on steel imports if they exceed the average over the past three years starting July 19. Korean shipments to EU in the steel categories totaled 3.3 million tons worth $2.9 billion, according to the Korean Ministry of Foreign Affairs.
The move comes in retaliation to the U.S.’s 25 percent tariff on foreign steel and 10 percent on aluminum in fear of causing “trade diversion, which may result in serious harm to EU steelmakers and workers in their industry,” said Commissioner for Trade Cecilia Malmstrom said in a press release distributed on Wednesday (local time).
The commission said it has already witnessed indications of steelmakers diverting some of their exports to the EU countries from the U.S.
The EU will impose definitive safeguard measures early 2019 at the latest after further investigation. The provisional safeguard measures can stay effective for a maximum of 200 days, according to the EC press release.
The latest decision by the EU is expected to aggravate woes for Korean steel suppliers whose sales have been hit by an import cap by the U.S. imposed in return for relief from the sweeping 25 percent duties.
By Woo Je-yoon and Cho Jeehyun
[ⓒ Pulse by Maeil Business News Korea & mk.co.kr, All rights reserved]
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