The EU plans to slash steel import quotas by half and impose a 50% tariff on excess imports, sparking fears of the “biggest ever crisis” in the UK steel industry. The move, aimed at protecting EU producers from cheap imports from China and Turkey, threatens Britain’s £3 billion steel exports to the bloc. UK officials, led by Prime Minister Keir Starmer, are seeking talks with Brussels for possible exemptions. Industry leaders warn the decision could devastate struggling UK steel firms, already reeling from financial distress and global competition.
EU Steel Tariff Hike Sparks Fears of 'Biggest Ever Crisis' for UK Industry
The European Union has unveiled plans to sharply increase tariffs on imported steel, a move the UK steel industry warns could trigger “perhaps the biggest crisis” in its history.
Under the new proposal, the European Commission aims to cut steel import quotas into the bloc by half. Imports exceeding the new limits will face a 50% tariff.
The EU remains the largest export destination for British steel, accounting for 78% of UK overseas sales worth nearly £3 billion annually.
The commission said the measures come amid pressure from member states and domestic producers struggling to compete with low-cost imports from China and Turkey.
Under the proposal, tariff-free import quotas would be reduced to 18.3 million tonnes a year — a 47% cut from 2024 levels. The plan still requires approval from EU member states and the European Parliament and is expected to take effect early next year“We are reacting to global overcapacity, unfair competition, state aid, and price undercutting,” said Stéphane Séjourné, the European Commission’s executive vice president for prosperity and industrial strategy.
“Eighteen thousand jobs were lost in the steel sector in 2024 — that’s far too many,” he told reporters in Strasbourg.
The announcement delivers another setback to the UK steel sector, following the indefinite suspension of a US tariff-free export deal in September.
Several British steel firms are already facing severe financial distress. The government took control of Chinese-owned plants in Scunthorpe earlier this year, while Liberty Steel’s Rotherham and Stocksbridge sites collapsed into public ownership last month.
Speaking en route to India on Tuesday, Prime Minister Sir Keir Starmer said the government would offer “strong support” to the industry, which could be severely hit by the EU’s move.
“We’re in discussions as you’d expect,” he said, declining to confirm whether the UK was seeking exemptions from the new tariff rules.
Gareth Stace, director general of UK Steel, urged ministers to leverage trade ties with Brussels to secure UK-specific quotas or risk “potential disaster.”
The EU’s move partly mirrors US President Donald Trump’s decision earlier this year to raise tariffs on foreign steel, prompting other nations — including Canada, Mexico, and Brazil — to impose similar protective measures.
Stace warned that the EU’s action could divert millions of tonnes of steel toward the UK, posing a “terminal threat” to many of Britain’s remaining steelmakers.
The Community Union, representing UK steelworkers, described the move as an “existential threat” to the sector.
At a press conference, European Trade Commissioner Maros Sefcovic said he intended to “fully engage” with the UK on the issue and hinted at the possibility of a bespoke UK quota in future negotiations.
In response, the UK Department for Business said it was seeking urgent clarification from the European Commission about the potential impact on British exports.
Industry Minister Chris McDonald said the government would work with allies to safeguard trade flows, adding:
“It’s vital we protect UK-EU trade and not add to our industries’ woes. We’ve shown commitment by securing access to the US market, and we’ll keep pursuing fairer trade protections.”
McDonald will meet steel industry representatives on Thursday to discuss their concerns.
‘A Big Blow’ to UK Firms
Liam Bates, UK managing director of Marcegaglia in Sheffield, a producer and exporter of stainless steel products, called the announcement a “big blow.”
“This is among the biggest challenges we’ve faced in years,” he said. “The key question now is whether the government can strike a deal to soften the impact.”
Bates said that since the UK does not impose tariffs on EU steel, there should be reciprocal treatment from Brussels.
“We’re hoping the government pushes for that,” he added, noting that trade with EU clients may be strained.
“We have strong relationships with our customers,” Bates said, “but this puts immediate pressure on our business and raises long-term questions about future cooperation.”