The EU accounts for 78 per cent of UK steel exports and the UK steel industry has reacted with worry to proposed EU tariff, or tax, changes
Proposed EU changes to steel tariffs have been described as “perhaps the biggest crisis the UK steel industry has ever faced” and “an existential threat”. The European Commission has proposed changes to its tariffs and quota system for imports of steel from outside of the EU.
It would slash existing tariff-free import quotas to around 18 million tonnes, while the out-of-quota tariff would be doubled to 50 per cent. This would return EU import volumes to levels last seen in 2013, when the UK was an EU member and so not subject to tariff-free import quota restrictions.
The EU’s import volume would be more than a third lower than its 2024 figure of 27.4 million tonnes, UK Steel has said. Industry Minister Chris McDonald said the Government is seeking “urgent clarification of the impact of this move on the UK”.
Just two months ago, the steel industry was welcoming an ease on tariff restrictions after a UK-EU agreement. British Steel’s chief commercial officer (interim) Lisa Coulson called that development “a significant boost to our business”.
The EU is by far and away the UK steel industry’s most important export market. It was the destination for 78 per cent of all UK steel exports, totalling 1.9 million tonnes of steel in 2024. The next largest export market was the USA, which under President Trump, has brought in renewed tariffs on steel imports.
“This is perhaps the biggest crisis the UK steel industry has ever faced,” UK Steel director-general Gareth Stace. “Government must go all out to leverage our trading relationship with the European Union to secure UK country quotas or potentially face disaster.
“The UK Government must now recognise the urgent need to put in place its own measures to defend against a flood of imports. The probability of the EU’s measures redirecting millions of tonnes of steel towards the UK could be terminal for many of our remaining steel companies.”
UK Steel is not only urging the Government to negotiate with the EU preferential treatment for the UK, but also put in place its own tightened import quotas. “Given that around 80 per cent of the UK’s steel exports go to Europe, the new measures proposed by the EU represent an existential threat to our industry, as well as the thousands of jobs and communities it supports right across the country,” said Alasdair McDiarmid, assistant general secretary at Community.
“This UK Government has consistently shown that it values and backs our steel industry, and we know that ministers will be acutely aware of the grave risks the EU’s proposal poses. It is vital that the government moves swiftly to negotiate preferential treatment for the UK, including through country-specific quotas.” He added it was also vital for tightened trade defence measures.
The UK currently has in place a steel safeguard measure and it is understood the Government is keeping all options under review to protect the crucial steel industry. Unite’s general secretary Sharon Graham called on UK steel to be backed for the long term.
“Without delay the UK must introduce strict rules to ensure that all UK infrastructure developments and all public sector projects must use domestically produced steel. This must be the first step in protecting a foundation industry which is critical for the economic success of our nation and vital for our national security.”
Minister to meet steel representatives
Industry Minister Chris McDonald was due to meet steel representatives on Thursday, October 9, to listen to the industry’s concerns following the latest developments. He said: “We will always defend our critical steel industry which is why we are pushing the European Commission for urgent clarification of the impact of this move on the UK.
“It’s vital we protect trade flows between the UK and EU and we will work with our closest allies to address global challenges rather than adding to our industries’ woes. This government has shown its commitment to our steel industry by securing preferential access to the US market for our exporters, and we continue to explore stronger trade measures to protect UK steel producers from unfair behaviours.”
The UK Government has committed to £2.5bn investment in the industry over the course of this Parliament. British Steel continues to be owned by Jingye Group, but has since mid-April been directed and effectively managed by the Government.
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