Archive · 13 Jun 2025
India Faces EU Steel Quota Limits Amid US Tariff Challenges
The EU is changing how it lets countries sell certain types of steel.
India is now in a group with other countries, including China, and they have a limited amount they can sell together.
If the group sells more than that amount, they will have to pay extra taxes.
This is a problem because India is also dealing with US tariffs.
India and the EU are also trying to make a trade agreement, and India will discuss these new rules with the EU.
EU placed India under a pooled quota for certain steel exports, impacting trade.
The move follows US tariffs, adding pressure to India's steel sector.
India must share a quota of 12,500 tonnes with other nations, including China.
The changes, effective July 1, last until June 2026, affect specific steel products.
India is in FTA discussions with the EU and will address the quota issue.
- Who
- The EU and India.
- What
- The EU's decision to implement a pooled quota for Indian steel exports.
- When
- The changes will come into effect on July 1, and remain until June 30, 2026.
- Where
- European Union.
- Why
- To correct imbalances in the current quota system for steel exports.
India
EU
Market Access
India
Concerned about losing market share due to competition within the shared quota, particularly from China.
EU
EU's focus on restoring trade balance; they have given exclusive duty-free quotas to some countries.
- Affected Products
- Angles, shapes, and sections of iron or non-alloy steel (Category 17)
- Pooled Quota
- Approximately 12,500 tonnes
- Tariff on Excess Exports
- 25%
- India's Steel Exports FY25
- $1.83 billion (articles made from iron or steel, including Category 17 products)
- FTA Status
- Advanced stage, expected in the next couple of months
