EU steel tariff surge threatens UK exports and auto supply chains
The European Union’s decision to slash duty-free steel quotas and double tariffs on excess imports to 50% has triggered alarm among British steelmakers and European manufacturers alike.
The move, designed to shield the EU’s domestic steel sector from global oversupply, could reshape Europe’s industrial trade links and expose the UK to one of its toughest export challenges since Brexit.
Brussels’ new proposal aims to replace the current “safeguard” system — due to expire in 2026 — with a tougher, permanent regime.
It would reduce tariff-free quotas by 47% compared with 2024 levels and raise duties from 25% to 50% on imports beyond those limits.
The European Commission said the plan answers long-standing demands from member states and unions to defend EU steelmakers and jobs, while aligning with the bloc’s decarbonisation goals.
UK steel at risk as Brussels tightens import rules
The UK steel industry is particularly exposed, with around 80% of its exports heading to EU markets.
The new tariffs threaten to cut off access to Britain’s most important trading destination, already strained by energy costs, plant closures, and lost competitiveness.
The move adds another blow to a sector that has struggled to recover from US tariffs of 25% on steel exports, and recent domestic job cuts at major plants in Port Talbot and Scunthorpe.
Industry groups warn that tighter EU import restrictions could divert surplus global steel — especially from Asia — toward the UK, driving down domestic prices and hurting producers.
Prime Minister Keir Starmer confirmed that discussions with Brussels and Washington are underway to prevent further market disruption.
Industry Minister Chris McDonald said the government is also exploring “stronger trade measures” to protect UK producers from unfair pricing practices.
Unlike Norway, Iceland, and Liechtenstein — which enjoy exemption from EU quotas as part of the European Economic Area — the UK must now negotiate its own terms.
The Commission has also indicated potential exemptions for Ukraine due to its wartime conditions, though no similar flexibility has yet been offered to Britain.
Brussels seeks balance amid global steel tensions
The EU’s move follows similar tariff actions by the US and Canada.
Washington recently raised its steel and aluminium import duties to 50%, while Ottawa introduced a 25% surtax on steel initially produced in China.
Both countries cited unfair competition from subsidised imports and national security concerns.
The European Commission said it would continue coordinating with global partners to address “steel overcapacity,” which it described as a worldwide challenge.
The new regime will be subject to approval from EU member states and the European Parliament before implementation.
Several governments, particularly those with strong automotive sectors such as Germany, are expected to lobby for adjustments or transitional support.
In the meantime, the UK remains in discussions with the EU over possible quota allocations, seeking to avoid severe disruption to a £4 billion export trade.
The coming months will reveal whether Brussels’ push to secure its steel industry can coexist with its commitment to free trade — or whether it risks igniting a new round of industrial friction between Europe and its closest trading partners.
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EU steel tariff surge threatens UK exports and auto supply chains
The European Union’s decision to slash duty-free steel quotas and double tariffs on excess imports to 50% has triggered alarm among British steelmakers and European manufacturers alike.
The move, designed to shield the EU’s domestic steel sector from global oversupply, could reshape Europe’s industrial trade links and expose the UK to one of its toughest export challenges since Brexit.
Brussels’ new proposal aims to replace the current “safeguard” system — due to expire in 2026 — with a tougher, permanent regime.
It would reduce tariff-free quotas by 47% compared with 2024 levels and raise duties from 25% to 50% on imports beyond those limits.
The European Commission said the plan answers long-standing demands from member states and unions to defend EU steelmakers and jobs, while aligning with the bloc’s decarbonisation goals.
UK steel at risk as Brussels tightens import rules
The UK steel industry is particularly exposed, with around 80% of its exports heading to EU markets.
The new tariffs threaten to cut off access to Britain’s most important trading destination, already strained by energy costs, plant closures, and lost competitiveness.
The move adds another blow to a sector that has struggled to recover from US tariffs of 25% on steel exports, and recent domestic job cuts at major plants in Port Talbot and Scunthorpe.
Industry groups warn that tighter EU import restrictions could divert surplus global steel — especially from Asia — toward the UK, driving down domestic prices and hurting producers.
Prime Minister Keir Starmer confirmed that discussions with Brussels and Washington are underway to prevent further market disruption.
Industry Minister Chris McDonald said the government is also exploring “stronger trade measures” to protect UK producers from unfair pricing practices.
Unlike Norway, Iceland, and Liechtenstein — which enjoy exemption from EU quotas as part of the European Economic Area — the UK must now negotiate its own terms.
The Commission has also indicated potential exemptions for Ukraine due to its wartime conditions, though no similar flexibility has yet been offered to Britain.
Brussels seeks balance amid global steel tensions
The EU’s move follows similar tariff actions by the US and Canada.
Washington recently raised its steel and aluminium import duties to 50%, while Ottawa introduced a 25% surtax on steel initially produced in China.
Both countries cited unfair competition from subsidised imports and national security concerns.
The European Commission said it would continue coordinating with global partners to address “steel overcapacity,” which it described as a worldwide challenge.
The new regime will be subject to approval from EU member states and the European Parliament before implementation.
Several governments, particularly those with strong automotive sectors such as Germany, are expected to lobby for adjustments or transitional support.
In the meantime, the UK remains in discussions with the EU over possible quota allocations, seeking to avoid severe disruption to a £4 billion export trade.
The coming months will reveal whether Brussels’ push to secure its steel industry can coexist with its commitment to free trade — or whether it risks igniting a new round of industrial friction between Europe and its closest trading partners.
The post EU steel tariff surge threatens UK exports and auto supply chains appeared first on Invezz
Читать больше
Europe markets open: Stoxx 600 flat, CAC 40 on edge as French govt crisis deepens