The British steel industry has been plunged into crisis after the European Union announced plans to slap 50 per cent tariffs on UK imports.
In what is a major blow to Sir Keir Starmer’s mission to reset relations with the bloc after Brexit, the European Commission revealed plans to double the current level of 25 per cent, while reducing tariff-free import volumes to 18.3 million tonnes a year – a 47 per cent reduction.
The director general of UK Steel said the fresh tariffs would be “devastating” to the industry, which currently exports 78 per cent of its steel to the EU. The increase comes after the industry is still dealing with the impact of 25 per cent tariffs on imports to the US, imposed by Donald Trump.
The prime minister has said he is in discussions with both the US and EU about the tariffs, saying the government is strongly supportive of the steel industry.
Gareth Stace, of UK Steel, warned the government must “go all-out” to secure quotas for the UK or “potentially face disaster”.
Speaking to Times Radio, he said: “This is perhaps the biggest crisis the UK steel industry has ever faced.
“The US has closed off its steel market to imports, and today, what we’ve seen is the EU proposing to do the same.
“We’re seeing a rapid rise of protectionist trade measures all over the world. And let me tell you, the last country to defend its steel industry will be the first country to deindustrialise. This is a massive issue for our sector.
“If the UK government can’t get round the table with the EU and convince the EU that we’re their friend, not their enemy, and then carve out a reasonable quota for UK exports into the EU, then we will see job losses in our sector.
“We will never, if we can’t get a deal, be the same steel sector in the UK ever again if we cannot trade with our biggest trading partner.”
Alasdair McDiarmid, assistant general secretary at the Community trade union, said: “Given that around 80 per cent of the UK’s steel exports go to Europe, the new measures proposed by the EU represent an existential threat to our industry, as well as the thousands of jobs and communities it supports right across the country.”
And Charlotte Brumpton-Childs, GMB union national officer, branded the measures a “hammer blow” to the UK steel industry. “This could be the end of steelmaking in the UK if proper safeguards aren’t secured,” she said.
Speaking to reporters on a plane on his way to India for a trade visit, Sir Keir said he was in talks with the US and EU over the tariffs.
He said: “Our position in relation to our steel industry is one of strong support, as you saw from Scunthorpe and Port Talbot.
“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. So I’ll be able to tell you more in due course, but we are in discussions as you’d expect.”
Pressed on whether he was seeking exemptions from the tariffs, the prime minister said: “I’m not going to go into the details, but I’m going to tell you in clear terms as you would expect, we are discussing this with the EU and with the US.”
Meanwhile, industry minister Chris McDonald said the government is “pushing for urgent clarification” in the wake of the announcement, saying the UK will “always defend our critical steel industry”.
“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.
“This government has shown its commitment to our steel industry by securing preferential access to the US market for our exporters, and we continue to explore stronger trade measures to protect UK steel producers from unfair behaviours,” he said.
The latest blow comes after months of uncertainty for the industry following the announcement of Donald Trump’s tariffs.
A US-UK deal signed earlier this year slashed trade barriers on a number of goods for both countries, but left British steel exports at 25 per cent, rather than falling to zero as originally agreed.
