The European Union has proposed cutting free-trade quotas on steel and steel products by 47%, a move that would impose significant tariffs on imports from countries including China, India, Turkey, and the United Kingdom. The UK government has said it will challenge the measures, which it warns could devastate the British steel industry.
Under the proposal, once the new quota of 18.3 million tonnes is reached, additional imports would face tariffs of up to 50%. The EU argues the measures are necessary to protect its traditional steel manufacturers from a flood of imports diverted by high US tariffs imposed by President Donald Trump. Neighbouring nations such as Norway, Iceland and Ukraine would be exempt.
UK Steel, the trade body representing the industry, said the proposed drop in tariff-free quotas would be disastrous. More than three-quarters of British steel exports go to the EU. Director-General Gareth Stace described it as “perhaps the biggest crisis the UK steel industry has ever faced” and urged the British government to secure country-specific quotas.
The EU proposal also includes a requirement for importers to declare where steel was melted and poured, and introduces a complex quota system. It replaces a current safeguard policy aligned with the World Trade Organisation, set to expire in June 2026. The European Parliament and Council must now ratify or amend the plan.
Trade union Community called the proposal “an existential threat to our steel industry,” while Assistant General Secretary Alasdair McDiarmid urged urgent negotiations to avoid a trade war. The UK steel industry, once a global powerhouse, now accounts for just 0.1% of the economy, with thousands of job losses expected at the Port Talbot plant in Wales.
