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Steel & Metal
- India -

EU plan to halve steel import quotas and double out‑of‑quota tariff to 50% raises Indian export risk

The European Commission’s proposal to tighten steel import protections would reduce tariff‑free quotas to 18.3 million tonnes a year—47% below 2024 levels—and double the duty on out‑of‑quota volumes to 50%, Business Standard reported on Tuesday, October 14, 2025. The plan, which still needs approval from the European Parliament and Council, is designed to replace EU safeguard measures that expire in June 2026. Analysts cited by the report said the combination of the new quota‑tariff regime and the Carbon Border Adjustment Mechanism (set to take effect in January 2026) could be a “double whammy” for Indian mills. The EU is India’s largest steel export market, accounting for about 45% of shipments; the bloc imported 27.4 million tonnes of finished steel in 2024, with India supplying roughly 12%—mostly flat products. Under the draft, flat products would receive 12.8 million tonnes of the quota pool, a 40% reduction versus 2024 imports, the report said. Industry researchers warned the cut could compel Indian exporters to seek alternative markets and intensify import competition at home. The article also noted that India imposed a provisional 12% safeguard duty in April 2025 on certain flat‑steel imports and that a final three‑year duty decision is pending with the finance ministry.

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