UK steel industry faces crisis over new EU tariffs

The tariffs have been raised to match the US’s, but with 78% of British exports going into the EU, some unions have claimed the move could destroy the UK industry.

Director general of UK Steel, Gareth Stace, said the increased tariffs will create “the biggest crisis the UK steel industry has ever faced.” Stace also called for further measures to be put in place to defend the sector from the threat of excessive imports, as steel is diverted away from the US and EU as a result of the tariffs.

Despite the threat posed by the announcement, UK Prime Minister, Keir Starmer, stated: “I think our position in relation to our steel industry is one of strong support as you saw from Scunthorpe and Port Talbot.”

He continued: “In relation to the question of tariffs or other measures, as you’d expect, we are in discussions with the EU about this, as we’re in discussions with the US about it.”

The EU is also proposing to decrease tariff-free quotas to 18.3mt per year, which would be a 47% reduction from 2024 levels.

As well as matching the US tariffs, the EU is making these changes in response to concerns from member states, including some regarding European steel industries struggling to compete with cheaper imports from countries such as China and Türkiye.

Speaking at the European Parliament, the European Commissions vice president for prosperity and industrial strategy, Stéphane Séjourné, said: "We have global over capacity, unfair competition, state aid, and undercutting in prices and we are reacting to that,

"18,000 jobs were lost in the steel sector in 2024. That's too many, and we had to put a stop to that."

The new measures are set to come into force early next year but will be subject to approval from the EU parliament and the majority of member states.

Sources: The Guardian, BBC