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EU Unveils 50% Steel Tariffs and Sharp Quota Cut, Triggering Urgent UK Talks

The plan aims to shield European mills from subsidised overcapacity, especially Chinese output.

Overview

  • The European Commission proposed halving the tariff‑free annual steel import quota to 18.3 million tonnes and applying a 50% duty on volumes above that level.
  • Brussels intends the measure to replace the current safeguard regime that applies 25% duties beyond quotas, with the proposal now awaiting approval by EU member states and the European Parliament.
  • UK industry bodies warn of an existential threat as about 78–80% of British steel exports go to the EU and say millions of tonnes excluded from the EU could be redirected to the UK without new protections.
  • The UK government says it is seeking urgent clarification from the Commission, with Prime Minister Keir Starmer and ministers in talks and officials exploring stronger trade measures and country‑specific quotas.
  • EU officials frame the move as necessary to protect jobs and enable decarbonisation, and they are pursuing a transatlantic ‘metals alliance’ with the United States to coordinate on global overcapacity and import diversion.