EU proposes steel industry protections, rattling UK manufacturers

BRUSSELS (AP) — The European Union proposed Tuesday cutting free-trade quotas by 47% on steel and steel products, effectively adding large tariffs on imports from countries like China, India, Turkey, and the United Kingdom, which said the measures would wreck the British steel industry. After importing 18.3 million tons, the new quota, additional imports will face up to 50% in new tariffs, a high price akin to U.S. President Donald Trump's steel measures. Neighboring nations like Norway, Iceland and Ukraine will be exempt.

A proposal to thwart overcapacity

The proposal attempts to buttress Europe's traditional steel manufacturers by imposing trade barriers to stem the flooding of Europe's markets with imports diverted by those high American tariffs.

Steel importers would be required to clearly declare where the products were melted and poured, and a complex quota system would govern what enters the EU common market. The proposal replaces a current steel safeguard policy aligned with the World Trade Organisation that is set to expire in June 2026.

“A strong, decarbonised steel sector is vital for the European Union’s competitiveness, economic security and strategic autonomy. Global overcapacity is damaging our industry," said European Commission President Ursula von der Leyen.

European Parliament and the European Council must now ratify or amend the proposal, which then might require negotiations with the WTO to check how member countries are affected by the measures.

The EU exported 77 billion euros ($89.7 billion) and imported 73.1 billion euros ($85.2 billion) worth of steel in 2024, according to the EU's statistics agency Eurostat.

The European Steel Association estimates that growing global steel overcapacity is at around 602 million tonnes, or 4 times the EU's total annual steel consumption.

Judith Kirton-Darling, general secretary for the trade union bloc IndustriAll's Europe office, said in September during the Emergency Steel Social that, “steel is the backbone of Europe’s economy, yet the sector is now at breaking point. That is why trade unionists from every corner of Europe have joined steelmakers at this summit to call for urgent action.”

Stéphane Séjourné, Executive Vice-President for Prosperity and Industrial Strategy, said the proposal would protect Europe's industrial future. "This is the new safeguard clause on steel. This is the reindustrialization of Europe,” he said in a post on X.

Britain's steel sector rattled

Trade body UK Steel said the proposed drop in the tariff-free quota would spell disaster for the embattled British steel industry. It said more than three-quarters of British steel exports go to the EU.