The UK steel industry faces what experts are calling its biggest crisis in decades after the European Union announced plans to impose 50% tariffs on steel imports, cutting tariff-free quotas by nearly half. The focus keyword is EU steel tariffs.
Under the proposal, the European Commission will reduce the amount of steel that can be imported into the bloc without tariffs to 18.3 million tonnes per year—a 47% reduction from 2024 levels. Once the cap is exceeded, a 50% duty will apply. The move, designed to protect struggling European producers from cheaper imports from China and Turkey, will hit the UK particularly hard, as 78% of its steel exports—worth nearly £3 billion—go to the EU.
The new measures are expected to take effect early next year after approval from EU member states and the European Parliament.
UK Steel Industry Warns of “Existential Threat”
UK Steel director general Gareth Stace warned that the move could spell “disaster” for British producers unless the government negotiates UK-specific quotas. “The government must go all out to leverage our trading relationship with the European Union or potentially face disaster,” he said.
The Community Union, which represents steelworkers, described the measures as an “existential threat” to the industry, already weakened by plant closures and financial troubles. The government has recently taken control of Chinese-owned sites in Scunthorpe and Liberty Steel plants in Rotherham and Stocksbridge.
Prime Minister Sir Keir Starmer said the government would provide “strong support” for the steel sector, though he declined to confirm whether the UK would seek exemptions from the EU’s new rules. “We are in discussions as you’d expect,” he said while travelling to India.
EU Defends Measures Amid Global Trade Tensions
European Commission vice president Stéphane Séjourné said the new tariffs were necessary to counter “global overcapacity and unfair competition.” He noted that 18,000 steel jobs were lost across Europe in 2024. “That’s too many, and we had to put a stop to that,” he told reporters in Strasbourg.
The European Commission’s move mirrors protectionist steps taken by the United States, where former President Donald Trump sharply raised steel tariffs earlier this year. Countries such as Canada, Mexico, and Brazil have since followed suit, introducing measures to shield domestic producers.
Experts warn that these tariffs could lead to steel previously bound for the EU being redirected to the UK market, further threatening domestic producers. “That could be terminal for many of our remaining steel companies,” Stace cautioned.
UK and EU in Talks to Limit the Fallout
European Trade Commissioner Maros Sefcovic said Brussels would “fully engage” with the UK to discuss possible adjustments, including the potential for a dedicated UK quota.
Industry Minister Chris McDonald said the government was seeking “urgent clarification” from the European Commission on the policy’s impact. “It’s vital we protect trade flows between the UK and EU,” he said, adding that the government “will work with our closest allies to address global challenges rather than add to our industries’ woes.”
The Department for Business said the minister will meet steel sector representatives on Thursday to discuss the crisis.
Industry Reacts: “A Big Blow” for UK Steel Exporters
Liam Bates, UK managing director at Marcegaglia in Sheffield, called the EU announcement a “big blow” for exporters. “This must be one of the biggest challenges we’ve faced for a very long time,” he said.
Bates urged the government to secure a reciprocal arrangement to prevent the UK from being penalized. “We have no tariffs on Europe, so you would expect some reciprocity. That’s the detail we’re hoping the government should work towards.”
He warned that relationships with EU clients could be strained: “We have good customers, but this immediately puts a strain on our business and raises doubts about long-term trade.”
