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The British steel industry is confronted with its “biggest crisis” in history, has warned the trade body of the sector because the EU is preparing for imposing steep rates that can be more devastating than those who are levied by the US.
The European Commission plans the rates of 50 percent for steel imports worldwide above a quota on 2013 levels on Tuesday, according to a document obtained by proposing the Financial Times.
The move threatens to cause disproportionate damage to the British steel industry, from which 80 percent of exports go to Europe. The steel import that is pressed from the EU can also flood the UK.
Gareth Stace, director-general of the industry Lobby Group UK Steel, warned that the new rates could “be a terminal for many of our remaining steel companies”, and for ministers to “acknowledge the urgent need to take his own measures to defend themselves against a stream of import”.
“This is perhaps the biggest crisis with which the British steel industry has ever confronted. The government must do everything to use our trade relationship with the European Union to protect the British country quota or possibly get a disaster,” he said.
The rates stack pressure on an industry struggling under the weight of high energy prices, global overcapacity caused by an abundance of Chinese steel and the investment needed to decipher steel production.
The industry is already struggling with 25 percent Levies imposed by US President Donald Trump after the Labor Government did not succeed in obtaining a promised zero tar love.
But a much larger part of the British steel is sold to Europe than to America. “This threatens to be Trump on steroids,” said an industrial figure.
The new import taxes are a new blow to a sector that is already in the Nwangstraat, where the government would take effect earlier this year to take control of British steel from the previous Chinese owner Jingye.
Steel producers press the government to use its long -awaited steel strategy, expect this fall, to reform the future of industry, rather than swinging crisis to crisis.
According to the EU proposals, countries will get specific quotas, just like product categories. The EU industry also has trouble competing with cheap import from China, Turkey, Vietnam and elsewhere.
The EU steel sector announced 18,000 job reductions in 2024, which has contributed to the 90,000 job losses since 2008, the industry -lobby Eurofer said.
“There is no other way to guarantee the long-term protection of the steel industry,” said an EU official. “If not, we will find ourselves without a steel industry.”
Liam Bates, president of Long Products in Marcegaglia, which has two stainless factories in the UK, said that the move was no surprise given the pressure of Trump’s rates on the EU steel industry.
He added that it would put “huge stress” on his British business -producing bars, which are used in car ometification and general machines.
“Immediately after the disappointment not to get zero free rates from the US, we eagerly anticipate the government’s steel strategy and efforts to make electricity prices competitive,” Bates said.
The British government has set a brave face at the 25 percent rate for British steel sales to the US, which is lower than the 50 percent that is used elsewhere.
But Prime Minister Sir Keir Starmer had previously hoped for a zero percent US rate for a quota of British steel export.
Even before imposing the rates, the British sector was declining, with the production of domestic rough steel fell to just 4 mn tons last year – the lowest total since the large depression of the 1930s.
Last year the EU imported 28 million tonnes of steel, a quarter of the total that was sold in the block. Under the proposed new regime, tariff -free quota would cover 18.3 million tonnes.
The EU measure would replace a rate of 25 percent that is full of exemptions and an increase in imports did not stop and must be renewed after five years.
It must be approved by a weighted majority of Member States and the European Parliament, a process that will probably last until the beginning of 2026.
