EU ambassador defends looming steel tariffs amid talks on protecting UK industry

The European Union’s ambassador to the UK has defended planned hikes in steel tariffs as officials in Whitehall attempted to limit the potentially catastrophic impact on British workers.

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.

The EU’s ambassador Pedro Serrano said official-level contacts had already been made between Whitehall and Brussels about the proposals but he stressed the need for Brussels to defend the bloc’s steel industry.

Talks between the UK and the EU are expected to cover issues including how much steel the UK will be allowed to export tariff-free into the bloc.

The measures are aimed at protecting the EU’s steelworkers from competition from cut-price products – especially from China – being dumped in European markets after Donald Trump’s tariffs made the US a less attractive destination.

The proposed new EU regime, which has not yet been adopted, is intended to replace existing safeguards which expire in June next year.

Mr Serrano said: “It’s an important proposal. It has to replace the system of safeguards that exist currently, that will expire in June ’26, and we need to have a system of safeguards, because there’s an overcapacity of steel production, as you will know, worldwide.

“And in addition, there are countries that are increasing their protectionist measures also in steel. So we have to protect the steel industry in the European Union. ”

But he said talks would take place with states like the UK which have a trade deal with the EU which would consider “country-specific allocation” of the tariff-free quota.

He said “contacts have already taken place with UK officials and discussions will continue”.

Sir Keir Starmer has previously said the UK was “in discussions” with the EU about the proposals, which have sounded alarm bells within the beleaguered British steel industry.

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.

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