Steel Saga: EU Joins US in Squeezing India’s Exports

India's steel industry is running up against new trade restrictions as the European Union tightens its safeguard measures following the US imposition of a 50% tariff on steel importation. The EU's new quota system may limit India's access to one of its largest export markets, with fears being raised about financial loss and competitiveness in the world economy.

Impact of EU's New Steel Quotas

The export scope of India has been reduced by the export restrictions imposed by the EU on 26 steel product groups with tighter tariff-rate quotas (TRQs).

Imports exceeding the quota volume would now attract a 25% duty, making Indian steel less competitive in the European market.

Additions have been made to India's hot-rolled coil (HRC) quota cuts by 25%, and quotations have also been reduced for plates, wire rods, and hollow sections.

India's Response and Trade Strategy

The Indian government has approached the World Trade Organization (WTO) to file a complaint against the EU's safeguard restrictions.

Tariffs on imports from the EU as retaliatory measures are multiple times under consideration to counter-restrict the restrictions.

Trade officials are fighting for fairer terms in ongoing India-EU Free Trade Agreement (FTA) talks.

Global Trade Consequences

US tariff hike and EU quota restriction could force Indian steel makers to seek alternative markets.

Industry players warn that these actions can destroy supply chains and render European customers more costly.

India's exports of steel to the EU worth $6.64 billion in FY24 are set to crash.

Sources: Economic Times, Business Standard, The Hindu BusinessLine, MSN News.