EU, U.K. Discuss Steel Club and Rare-Earth Response

The U.K. and EU are discussing a Western “steel club” to align tariffs and give members preferential treatment — possibly with U.S. participation — as Brussels and London seek to shield producers from subsidised Chinese steel and overcapacity, with Britain pressing for carve-outs in EU quotas and stronger trade defenses. U.S. and U.K. officials have urged closer coordination and industry groups say a broader alliance could help curb heavily subsidised imports that threaten European and British mills. Separately, the European Commission is preparing a RESourceEU strategy to diversify supplies after China tightened export controls on rare-earths and battery materials, noting that over 90% of the EU’s rare-earth magnet consumption depends on China. President Ursula von der Leyen said the bloc is ready to use all instruments, including the Anti-Coercion Instrument, and to coordinate with G‑7 partners, while Trade Commissioner Maroš Šefčovič has invited China’s commerce minister and launched an Export Control Dialogue to ease licensing bottlenecks and address a related Nexperia dispute. Brussels plans measures such as recycling, joint purchasing, stockpiling, and domestic processing and is accelerating partnerships (Australia, Canada, Chile), even as member states debate the political will to trigger tougher trade remedies.