The Ministry of Trade, Industry and Energy said Wednesday that South Korean steel exports could take a major hit after the European Union(EU) announced plans to replace its current safeguard system with a new tariff-rate quota scheme.

Under the proposal, duty-free import quotas will be reduced by 47 percent, while tariffs on steel products will double from 25 percent to 50 percent — a move intended to protect Europe’s industry but one likely to weigh heavily on South Korean exporters.

South Korea exported four-point-48 billion U.S. dollars’ worth of steel to the EU last year, placing Europe alongside the United States as one of the country’s top two overseas markets, according to the Korea International Trade Association.

Seoul plans to raise its concerns directly with Brussels before the new trade barriers take effect, with Trade Minister Yeo Han-koo expected to meet EU Trade Commissioner Maroš Šefčovič soon.

In addition, Vice Minister Moon Shin-hak will visit key steel export sites this week to hear from industry officials, while a public-private task force meeting on October 10 will address the need for a “high-value steel industry strategy” to mitigate the impact of the EU’s new tariff-rate quota regime.