The British steel industry faces the “biggest crisis” in its history after the European Union said it had “no choice” but to hit the UK with 50 per cent tariffs.
In a blow for Sir Keir Starmer’s “reset” with Brussels, the European Commission said it would fast-track plans to halve the amount of steel that can be imported tax-free into the bloc. At the same time, it will increase its tariff rate from 25 to 50 per cent to protect the European steel industry.
The UK exports 78 per cent of its steel to the EU and the industry warned that the change would “decimate” the UK’s manufacturing base which is already struggling with the American tariffs and global oversupply.
Gareth Stace, director-general of the trade body UK Steel, said “This is perhaps the biggest crisis the UK steel industry has ever faced. The UK government must now recognise the urgent need to put in place its own measures to defend against a flood of imports”.
British sources said that the UK imported 3.7 million tonnes of steel from the EU and that this could be subject to retaliatory tariffs.
The UK exported 1.9 million tonnes of steel to the EU in 2024. The industry as a whole, for both domestic and foreign markets, produced only 4 million tonnes of steel last year.
An EU official dismissed British claims that the change was in breach of the post-Brexit Trade and Co-operation agreement, saying that it had been made under emergency “safeguard” clauses.