Steel bosses warn of extinction as EU doubles tariffs to 50%

UK steel faces an ‘existential threat’ from EU tariffs (PA) Anna Gowthorpe

UK steel manufacturers are confronting an "existential threat" from European Union proposals to dramatically increase tariffs on steel imports. The European Commission has unveiled plans to impose 50% tariffs on steel, representing a doubling from current levels of 25%.

The measures would slash tariff-free import volumes to 18.3 million tonnes annually, marking a 47% reduction from existing levels. This development compounds challenges already facing British industry from levies affecting steel exports to the American market.

UK Steel warned that access to Britain's most crucial export market could be "severely curtailed" by these proposals. The trade association highlighted that 78% of British steel currently reaches European destinations, making the EU the industry's primary export market.

Government seeks urgent clarity

Industry minister Chris McDonald confirmed the government would defend the steel sector against these challenges. "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 protecting trade relationships with European partners. "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 referenced previous government achievements, noting secured preferential access to the US market for British exporters. The administration continues exploring stronger trade measures to shield UK steel producers from unfair competition.

Industry leaders warn of potential catastrophe

Gareth Stace, director-general at UK Steel, described the situation as potentially unprecedented in scale. "This is perhaps the biggest crisis the UK steel industry has ever faced," he warned.

Stace urged immediate government action to leverage trading relationships with the European Union. "Government must go all-out to leverage our trading relationship with the European Union to secure UK country quotas or potentially face disaster," he stated.

The industry leader emphasised urgent 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 warned.

Trade unions sound alarm over jobs

Alasdair McDiarmid from the Community trade union highlighted threats to employment and communities nationwide. He stressed that around 80% of UK steel exports reach European markets, making the proposed measures an existential threat to the industry.

McDiarmid acknowledged government support whilst calling for swift action. He said it was vital the government moves "swiftly to negotiate preferential treatment for the UK" and strengthen trade defence measures.

Charlotte Brumpton-Childs from GMB union described the measures as 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.