EU Plans 50% Steel Tariffs, Cutting UK Quotas, Threatening Industry Collapse

The European Union is set to impose steep tariffs of up to 50% on steel imports exceeding reduced quotas, aiming to protect its domestic steel industry from cheap imports, particularly from Asia and China. This move poses a severe threat to the British steel sector, which exports around 78% of its steel, approximately 1.9 million tonnes, to the EU, risking the loss of its largest market and potentially causing a crisis described as the biggest disaster the industry has faced. The EU's new safeguarding measures are WTO compatible and seek to protect 350,000 direct and 1.5 million indirect European jobs, while also prompting discussions with trade partners including the U.S. about steel import quotas. British steel producers have expressed alarm, warning that the tariffs could be “terminal” for many companies, and the UK government is considering additional protective measures and investments to support the industry. The EU insists these tariffs are necessary to enable the steel industry to invest, decarbonize, and remain competitive, with the proposal expected to be approved by the European Council and Parliament, though it may be moderated. This development complicates UK-EU relations, which had seen attempts at resetting cooperation, and highlights ongoing challenges in global steel trade policies, including efforts to align with the U.S. on addressing Chinese steel overcapacity.