UK steel set for further hit as EU to double tariffs

UK steel manufacturers are to be hit by another round of tariffs, even higher and more impactful than those levied by the US, representing "an existential threat" to the industry.

The European Union (EU) is hiking the tax on steel it imports, with the tariff to be 50%, double the 25% currently levied by the Trump administration in the US and the EU's current rate.

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This decision is an "existential threat", according to the assistant general secretary of the Community union, Alasdair McDiarmid.

"Europe is by far the largest destination for UK steel exports, and losing access to this market would have a catastrophic impact on British jobs," he said.

UK Steel, the steel industry body, described it as "perhaps the biggest crisis the UK steel industry has ever faced" and called on the government to "secure UK country quotas".

Establishing a UK country quota could mean some steel is traded with lower or no tariffs at all.

If this is not arranged, the industry would "potentially face disaster", said Gareth Stace, the director general at UK Steel.

Political response

When asked about the topic, Prime Minister Keir Starmer said, "Our position in relation to our steel industry is one of strong support."

He added: "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."

Why is the EU doing it?

The EU is erecting the trade barrier to avoid an influx of steel imports flooding its market in the wake of the US's tariffs hike and to avoid making the EU less competitive for domestic producers.

EU commissioner for prosperity and industrial strategy, Stephane Sejourne, said the EU was also reducing the amount of steel being imported from abroad to "save our European steel plants and jobs".

Similar measures have been called for by UK Steel.

"The UK government must now recognise the urgent need to put in place its own measures to defend against a flood of imports," Mr Stace said.

"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."

Detail of when the policy will take effect has yet to be announced.

Responding to the news, 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."

(c) Sky News 2025: UK steel set for further hit as EU to double tariffs