On Tuesday, the European Union announced a new set of tariffs on steel imports, increasing the percentage to 50% and not providing any exceptions for metal imports from the UK. This announcement poses significant concerns for the UK steel sector, as the EU represents its largest market, accounting for 78% of UK steel exports, approximately 1.9 million tonnes in 2024. The anticipated tariffs could render many British steel products uncompetitive in the EU market.
The UK steel industry’s reliance on the EU is influenced by geographical factors, with Ireland being a significant buyer. Moreover, prior to Brexit, the UK benefited from being part of the EU single market, which facilitated easier access to trade. Since leaving the EU, UK steel exports have faced new challenges in re-establishing favorable trade terms.
The European Commission’s decision to impose these tariffs is in response to difficulties within its own steel industry, which has struggled with high energy costs and an oversupply of steel, particularly from China. Many EU steel plants have not seen modernization in decades, contributing to the need for protective measures. The EU’s current safeguard measures, initially set to expire next June, have prompted this substantial tariff increase as a strategy to avert industry collapse.
Under these new regulations, tariff-free quotas will still be established, allowing for 18.3 million tonnes of steel to enter the EU each year, marking a 47% reduction compared to previous quotas. The specifics of how these quotas will be allocated remain uncertain, raising questions for UK steelmakers seeking to secure a portion of this quota.
Although the EU’s tariffs appear to align with broader measures against global steel overcapacity, particularly from China, the implications for the UK steel industry and its potential response options remain critical areas of discussion moving forward.
Source: https://www.theguardian.com/business/2025/oct/08/existential-threat-eu-steel-tariffs-mean-uk-industry-explainer