UK steel manufacturers face ‘existential threat’ from EU tariff hikes

UK steel manufacturers face an “existential threat” from European Union plans to hike taxes on steel.

The European Commission has revealed plans to impose 50% tariffs on steel, double the current level of 25%, while reducing tariff-free import volumes to 18.3 million tons a year – a 47% reduction.

The move will come as a further blow to British industry, which has already been hit by levies on steel into the American market.

UK Steel, a trade association which champions the sector, warned that access to Britain’s most important export market, which is currently the destination for 78% of British steel, could be “severely curtailed” by the move.

It called for the Government to negotiate preferential treatment for the UK, and for Britain to have its own import quotas.

The Government has said they are “pushing for urgent clarification” on the plans.

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.

“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.”

Gareth Stace, director-general at UK Steel, said:  “This is perhaps the biggest crisis the UK steel industry has ever faced.

“Government must go all-out to leverage our trading relationship with the European Union to secure UK country quotas or potentially face disaster.

“The UK Government must now recognise the urgent need to put in place its own measures to defend against a flood of imports.

“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.”

Alasdair McDiarmid, assistant general secretary at the Community trade union, said: “Given that around 80% 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.

“This UK Government has consistently shown that it values and backs our steel industry, and we know that ministers will be acutely aware of the grave risks the EU’s proposal poses.”

He said it was vital the Government moves “swiftly to negotiate preferential treatment for the UK” and tighten trade defence measures.

Charlotte Brumpton-Childs, GMB union national officer, branded the measures a “hammer blow” to the UK steel industry.

She said: “This could be the end of steel-making in UK if proper safeguards aren’t secured.”