Steel exporters to feel the heat as the EU mulls doubling tariffs from 2026

Steel exports to the European Union, a market that accounted for 45% of Indian exports in 2024, will come under enormous strain with the European Commission’s proposal to slash tariff-free import quota by 47% and double the duty on out-of-quota imports by 50%. The proposal will replace the steel safeguard measure that is set to expire by June 2026, potentially harming the prospects of countries such as India, which exported 3.71 million tonnes of steel to the EU in 2024, of its total 8.24 million tonnes exports. Coupled with the Carbon Border Adjustment Mechanism (CBAM), which will take effect from January 1, 2026, the new tariff proposal would make the landed cost of Indian steel exports in the EU far less competitive than it is currently, industry participants say, as per a report.

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