The European Union (EU) has announced plans to increase tariffs on imported steel, which the UK steel industry has described as a significant challenge for its future. The EU Commission aims to cut the quota for tariff-free steel imports to 18.3 million tonnes per year, representing a 47% reduction from 2024 levels. Beyond this quota, a new 50% tariff will be imposed.
This move comes as the EU seeks to address concerns from member states experiencing difficulties competing with inexpensive steel from countries such as China and Turkey. The UK’s steel sector has a vital trade relationship with the EU, accounting for nearly £3 billion or 78% of the UK’s steel exports. The new tariffs will go into effect next year, pending approval from EU member states and the European Parliament.
Stéphane Séjourné, the European Commission’s Executive Vice President for Prosperity and Industrial Strategy, noted that global overcapacity and unfair competition have necessitated this reaction, citing the loss of 18,000 jobs in the sector in 2024.
This announcement follows a difficult period for the UK steel industry, which recently faced setbacks, including a proposed deal to eliminate tariffs on UK steel exports to the US being placed on indefinite hold. Some UK steel firms are already experiencing severe financial difficulties, prompting government intervention in several cases.
UK Prime Minister and opposition leader Sir Keir Starmer have both indicated that discussions are ongoing regarding potential support for the steel industry in response to the EU’s new measures. Gareth Stace, the director general of UK Steel, urged the government to leverage its trade relationship with the EU to secure country quotas, warning that failing to do so could endanger many UK steel manufacturers. The UK Department for Business is seeking further clarification on the potential impacts of these tariffs on the UK market.
Source: https://www.bbc.com/news/articles/cwy875px79po?at_medium=RSS&at_campaign=rss