UK steel manufacturers are to be hit by another round of tariffs, even higher and more impactful than those levied by the US, representing “an existential threat” to the industry.
The European Union (EU) is hiking the tax on steel it imports, with the tariff to be 50%, double the 25% currently levied by the Trump administration in the US and the EU’s current rate.
Money blog: Massive £400 bank switch offer – but there’s a salary catch
This decision is an “existential threat”, according to the assistant general secretary of the Community union, Alasdair McDiarmid.
“Europe is by far the largest destination for UK steel exports, and losing access to this market would have a catastrophic impact on British jobs,” he said.
UK Steel, the steel industry body, described it as “perhaps the biggest crisis the UK steel industry has ever faced” and called on the government to “secure UK country quotas”.
Please use Chrome browser for a more accessible video player
Establishing a UK country quota could mean some steel is traded with lower or no tariffs at all.
‘Disappointing’ no steel tariff deal done before Trump in town, industry says
US financial firms pledge £1.25bn to UK ahead of Trump’s visit
US court rules Trump’s tariffs are illegal – but leaves them in place for now
If this is not arranged, the industry would “potentially face disaster”, said Gareth Stace, the director general at UK Steel.
Why is the EU doing it?
The EU is erecting the trade barrier to avoid an influx of steel imports flooding its market in the wake of the US’s tariffs hike and to avoid making the EU less competitive for domestic producers.
EU commissioner for prosperity and industrial strategy, Stephane Sejourne, said the EU was also reducing the amount of steel being imported from abroad to “save our European steel plants and jobs”.
Similar measures have been called for by UK Steel.
“The UK government must now recognise the urgent need to put in place its own measures to defend against a flood of imports,” Mr Stace said.
“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.”
Detail of when the policy will take effect has yet to be announced.
Be the first to get Breaking News
Install the Sky News app for free
Responding to the news, industry minister Chris McDonald said,
“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.”
“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.”
