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EU Proposes 50% Steel Tariffs and Sharp Quota Cuts, Prompting UK Industry Crisis Warnings

EU officials frame the plan as vital to protect and decarbonise the bloc’s steel sector ahead of scrutiny by member states and the European Parliament.

Overview

  • The European Commission has tabled a plan to halve duty‑free steel import volumes to about 18.3 million tonnes and levy a 50% tariff on shipments above that threshold, with new ‘melt‑and‑pour’ origin checks.
  • The proposal would replace the current safeguard regime that applies 25% duties beyond quotas and is scheduled to expire in 2026, and it remains subject to approval before potential mid‑2026 implementation.
  • UK Steel and unions call the plan an existential threat because roughly 78–80% of British steel exports go to the EU, warning of job losses and a risk of diverted global steel flooding the UK market.
  • London says it is seeking urgent clarification from Brussels, pushing for country‑specific quotas or other carve‑outs, and exploring stronger domestic trade protections for producers.
  • Brussels links the move to countering Chinese overcapacity and to aligning with the United States through a proposed ‘metals alliance,’ arguing the measures are necessary to sustain investment and decarbonisation.