Issue US Section 301, EU steel quotas and the EU Industrial Accelerator Act raise trade barriers for Korean industry

Summary

KIET highlights a series of trade measures that reshape export conditions for Korea's key industries in 2026. The US Section 301 investigation and broader protectionism raise uncertainty over machinery exports to the US and weigh on global capital spending and machinery demand. A tighter EU steel TRQ is expected to cut shipments to the EU, forcing a restructuring of export destinations and pushing some products toward the domestic market. The institute nonetheless expects alternative export markets to keep the effect on steel production limited. The EU Industrial Accelerator Act makes local European production increasingly important, which could partly hurt battery exports, although Korean battery makers that already operate European plants are rated as likely beneficiaries. Possible additional US measures under Section 301 are also named as a downside risk that could delay steel's recovery.