Government ‘in discussions’ with EU over steel tariff hike – Starmer

The Government is “in discussions” with the European Union over a steel tariff hike, the Prime Minister has said, as UK industry figures warned of an “existential threat”.

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

It would effectively match the levy US President Donald Trump previously imposed on the EU.

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

As he travelled to India on a trade mission, Sir Keir Starmer was asked if he believed the EU would move forward with its plans to match Mr Trump’s steel levies.

Sir Keir replied: “I think our position in relation to our steel industry is one of strong support as you saw from Scunthorpe and Port Talbot.

“In relation to the question of tariffs or other measures, as you’d expect, we are in discussions with the EU about this, as we’re in discussions with the US about it.

“So I’ll be able to tell you more in due course but we are in discussions, as you’d expect.”

Pressed on whether the UK was seeking exemptions, the Prime Minister said he would not go into details but that discussions were taking place with the EU and the US.

European Commission president Ursula von der Leyen said global overcapacity is damaging industry, adding that officials “need to act now”.

The commission has been under pressure from some member states which have struggled to compete with cheap imports from countries such as China.

The plan, which was presented to the European Parliament on Tuesday, is also intended to strengthen the traceability of steel.

It would replace the current steel safeguard measure, which is due to expire in June 2026.

The UK Steel trade association 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.

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 the Government must move “swiftly to negotiate preferential treatment for the UK” and tighten trade defence measures.

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

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

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.”