UK steel manufacturers are confronting what industry leaders describe as an "existential threat" from European Union plans to dramatically increase tariffs on steel imports. The European Commission has unveiled proposals to double steel tariffs from the current 25% to 50%.
The measures would also slash tariff-free import volumes to 18.3 million tons annually, representing a 47% reduction from current levels. This comes as another blow to British industry, which has already been impacted by levies on steel exports to the American market.
UK Steel, the trade association representing the sector, warned that access to Britain's most crucial export market could be "severely curtailed". The EU currently receives 78% of British steel exports, making it the industry's most important destination.
Government pushes for urgent talks
Industry minister Chris McDonald said the government would defend the critical steel sector. "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," he stated.
McDonald emphasised the need to protect trade flows between Britain and the EU. "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," he added.
The minister highlighted previous government support, noting secured preferential access to the US market for exporters. The government continues exploring stronger trade measures to protect UK steel producers from unfair competition.
Industry warns of potential disaster
Gareth Stace, director-general at UK Steel, described the situation as potentially the biggest crisis the industry has ever faced. "This is perhaps the biggest crisis the UK steel industry has ever faced," he warned.
Stace emphasised the urgent need for defensive measures against import flooding. "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," he stated.
The industry leader called for immediate government action to secure UK country quotas through leveraging trading relationships with the European Union. UK Steel has specifically requested preferential treatment negotiations and Britain's own import quotas.
Trade unions sound alarm
Alasdair McDiarmid from the Community union highlighted the threat to jobs and communities across the country. He stressed that around 80% of UK steel exports go to Europe, making the proposed measures an existential threat to the industry.
McDiarmid acknowledged government support for the steel sector whilst calling for swift action. He said it was vital the government moves "swiftly to negotiate preferential treatment for the UK" and tighten trade defence measures.
Charlotte Brumpton-Childs from GMB union branded the measures a "hammer blow" to UK steel-making. "This could be the end of steel-making in UK if proper safeguards aren't secured," she warned.
Sources used: "PA Media" Note: This article has been edited with the help of Artificial Intelligence.
