Federal Character
  • Home
  • News
  • Politics
  • Business & Finance
  • Entertainment
  • Sports
  • Tech
  • Relationship and Life
  • Fashion & Lifestyle
  • Food & Nutrition
  • Health
  • Opinion
No Result
View All Result
  • Home
  • News
  • Politics
  • Business & Finance
  • Entertainment
  • Sports
  • Tech
  • Relationship and Life
  • Fashion & Lifestyle
  • Food & Nutrition
  • Health
  • Opinion
No Result
View All Result
Federal Character
No Result
View All Result
Home Business & Finance

Could 50% EU Tariffs Create the “Biggest Ever Crisis” for UK Steel?

Somto NwanoluebySomto Nwanolue
October 7, 2025
in Business & Finance
0
Could 50% EU Tariffs Create the "Biggest Ever Crisis" for UK Steel?
Share on FacebookShare on TwitterShare on Whatsapp

The EU has announced plans to hike tariffs on imported steel in a move the UK’s steel industry has said could be “perhaps the biggest crisis” it has ever faced. The commission has set out plans to cut the amount of steel that can be imported into the bloc by half – beyond which the new 50% tariffs will apply. The EU is the UK’s most important export destination for steel, worth nearly £3bn and representing 78% of steel products made in the UK for overseas markets.

Unsurprisingly, the commission came under pressure from some member states and their steel industries, who have been struggling to compete with cheap imports from countries like China and Turkey. The EU is proposing to reduce tariff-free quotas for imports to 18.3 million tonnes a year—a 47% reduction from 2024 levels. The new measures will come into force early next year, but will first need to be approved by the majority of EU member states and the European Parliament.

“We have global over capacity, unfair competition, state aid, and undercutting in prices and we are reacting to that,” stated Stéphane Séjourné, the European Commission’s executive vice president for prosperity and industrial strategy. “Eighteen thousand jobs were lost in the steel sector in 2024. That’s too many, and we had to put a stop to that,” he told a news conference at the European Parliament in Strasbourg. The announcement is another blow to the UK steel industry, after a proposed deal to eliminate tariffs on UK steel exports to the US was put on hold indefinitely in September.

Could 50% EU Tariffs Create the "Biggest Ever Crisis" for UK Steel?

Speaking on his way to India on Tuesday, the prime minister said there was “strong support” from the government for the British steel industry, which could be severely impacted by EU tariffs. “I’ll be able to tell you more in due course, but we are in discussions as you’d expect,” Sir Keir Starmer said, refusing to go into the details of any discussion, including whether the UK was seeking exemptions.

Responding to the announcement, the director general of UK Steel, Gareth Stace, said the government “must go all out to leverage our trading relationship with the European Union to secure UK country quotas or potentially face disaster.” He also cautioned against the EU’s measures “redirecting millions of tonnes of steel towards the UK,” something which could be “terminal for many of our remaining steel companies.” The Community Union, representing UK steelworkers, called the measures an “existential threat” to the industry.

In a statement, the Department for Business said it was “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,” Industry Minister Chris McDonald said.

“This government has shown its commitment to our steel industry by securing preferential access to the US market for our exporters, and we continue to explore stronger trade measures to protect UK steel producers from unfair behaviours.” The government said the industry minister will meet steel representatives on Thursday to discuss their concerns.

Table of Contents

Toggle
  • Why It Matters
  • What Happens Now

Why It Matters

The European Union’s dramatic move to double its steel import tariff to 50% and slash import quotas by nearly half is a clear sign that global trade wars are intensifying, with UK steel caught squarely in the crossfire. The Commission frames this as a defensive, essential measure (a “last stand for the continent’s industrial sovereignty,” as one EU official put it) against a tidal wave of global steel overcapacity fueled by subsidised production from Asia and elsewhere. They argue that protecting the EU’s own jobs and securing its industrial base is not just protectionism but an act of strategic self-preservation, particularly as they push towards costly green steel production that needs market stability to succeed.

However, for the UK steel industry, which sends nearly 80% of its exports to the bloc, this decision feels less like a shield against China and more like a punitive trade barrier against a close neighbour. With the UK now fully outside the EU’s internal market, Brussels is asserting its leverage. By drastically reducing the duty-free quota to just 18.3 million tonnes across all trading partners, and subjecting excess imports to a crippling 50% duty, the EU is making British steel exports significantly less competitive.

This is an existential threat that could trigger immediate job losses in steel towns across Wales, Yorkshire, and the Midlands, already reeling from high domestic energy costs and a recent loss of preferential access to the US market. The EU’s action, while justified by its officials as an alignment with the US’s own high tariff regime, tragically exacerbates the post-Brexit trade tensions for Britain.

What Happens Now

The impact of the new EU steel tariffs on the UK is two-fold and potentially catastrophic. Firstly, the export crisis: the massive levy on shipments above the new, sharply reduced quota will severely curtail demand for British steel in its most vital market. UK producers, already operating on thin margins, cannot absorb a 50% tariff and remain competitive against EU domestic producers or even other exporters who may negotiate preferential deals. The result will be a sharp contraction in export revenue, forcing production cuts and, inevitably, redundancies.

Secondly, the import flood: as UK Steel’s Director General Gareth Stace rightly warns, this new protectionist wall around the EU will redirect millions of tonnes of cheap steel from other global producers (Turkey, China, India) towards the next most accessible market, which is the United Kingdom. Without robust trade defence measures and strong steel safeguards of its own, the UK risks becoming a dumping ground for the world’s steel surplus.

This influx of low-cost steel would critically undermine the domestic price base, making it impossible for the few remaining UK steel companies to compete even on their home soil.

Tags: BusinessEUfederal characterForeign NewsNewsSteelTariffsUK Steel
Somto Nwanolue

Somto Nwanolue

Somto Nwanolue is a news writer with a keen eye for spotting trending news and crafting engaging stories. Her interests includes beauty, lifestyle and fashion. Her life’s passion is to bring information to the right audience in written medium

Related Posts

October Onslaught: Naira Free-Falls as Dollar, Euro, Pound Tighten the Noose
Business & Finance

October Onslaught: Naira Free-Falls as Dollar, Euro, Pound Tighten the Noose

October 27, 2025
Dangote Refinery Set to Dethrone India’s Jamnagar, Becomes World’s Largest
Business & Finance

Dangote Refinery Set to Dethrone India’s Jamnagar, Becomes World’s Largest

October 26, 2025
The Tariffs Gets Dumber Everyday
Business & Finance

The Tariffs Gets Dumber Everyday

October 26, 2025
Next Post
Ready to Pay with Your Face? India's UPI Gets Biometric Authentication

Ready to Pay with Your Face? India's UPI Gets Biometric Authentication

A Mayor, a Stabbing, and a Country on Edge: What’s Going On in Germany?

A Mayor, a Stabbing, and a Country on Edge: What’s Going On in Germany?

BBNaija S10: Imisi Receives ₦80m Cash Prize, Brand-New SUV

BBNaija S10: Imisi Receives ₦80m Cash Prize, Brand-New SUV

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Recommended

Dollar, Euro and Pounds To Naira Exchange Rate For Today, December 23 2023

Dollar, Euro and Pounds To Naira Exchange Rate For Today, December 23 2023

2 years ago
CBN’s Latest Treasury Bill Auction Yields 24.77% Rate

CBN’s Latest Treasury Bill Auction Yields 24.77% Rate

1 year ago
Will Kylian Mbappé Finally Fly to Real Madrid?

Will Kylian Mbappé Finally Fly to Real Madrid?

2 years ago
Austria Attacker Had Bomb-Making Plans at Home

Austria Attacker Had Bomb-Making Plans at Home

5 months ago

Categories

  • Beauty
  • Business & Finance
  • Entertainment
  • Fashion & Lifestyle
  • Food & Nutrition
  • Government
  • Health
  • News
  • Politics
  • Relationship and Life
  • Sports
  • Tech

Topics

2023 Aboki/Bureau De Change (BDC) apc Arsenal buhari Business cbn chelsea china court Davido Dollar Efcc Election Entertainment Euro and Pounds To Naira Exchange Rate For Today exchange rates for the Nigerian Naira (NGN) Fashion federal character federal government Finance food Football Foreign News government health inec Israel lagos Manchester United Naira Naira Black Market exchange rates News Nigeria pdp police Politics president protest Russia Sports tinubu trump ukraine US
No Result
View All Result

Highlights

Man Pleads Guilty to Assassinating Former Japanese PM Shinzo Abe

Ivory Coast’s Ouattara, Wins Fourth Term After Ban of Key Rivals

Portable Breaks Down What Makes Marriage Work to Regina Daniels

Vinicius​‍​‌‍​‍‌ Jr Sparks Exit Rumours After El Clásico Furious Reaction to Substitution

Messi​‍​‌‍​‍‌ Wishes to Play 2026 World Cup Look but Factors Fitness as the Main Decider

How J Martins Miraculously Walked Away From a Potentially Fatal Crash

Trending

Movie Review: Love in Every Word – The Wedding Fails to Match Its Hype, Lacks Replay Value (4/10)
Entertainment

Movie Review: Love in Every Word – The Wedding Fails to Match Its Hype, Lacks Replay Value (4/10)

byAyobami Owolabi
October 28, 2025
0

Showing on YouTube, Love in Every Word – The Wedding has quickly racked up millions of views,...

“Southeast Should Have Six States,” Former Imo Governor Udenwa Declares

“Southeast Should Have Six States,” Former Imo Governor Udenwa Declares

October 28, 2025
Plane Crashes Minutes After Takeoff in Kenya, Killing Foreign Tourists

Plane Crashes Minutes After Takeoff in Kenya, Killing Foreign Tourists

October 28, 2025
Man Pleads Guilty to Assassinating Former Japanese PM Shinzo Abe

Man Pleads Guilty to Assassinating Former Japanese PM Shinzo Abe

October 28, 2025
Ivory Coast's Ouattara, Wins Fourth Term After Ban of Key Rivals

Ivory Coast’s Ouattara, Wins Fourth Term After Ban of Key Rivals

October 28, 2025

We launched Federal Character in February 2021 based on the belief that the world is in need of smarter and more efficient reporting of events shaping our rapidly changing world. We pledged to put our audience first, always.

Recent News

  • Movie Review: Love in Every Word – The Wedding Fails to Match Its Hype, Lacks Replay Value (4/10)
  • “Southeast Should Have Six States,” Former Imo Governor Udenwa Declares
  • Plane Crashes Minutes After Takeoff in Kenya, Killing Foreign Tourists

Categories

  • Beauty
  • Business & Finance
  • Entertainment
  • Fashion & Lifestyle
  • Food & Nutrition
  • Government
  • Health
  • News
  • Politics
  • Relationship and Life
  • Sports
  • Tech

© 2024 FederalCharacter.com

No Result
View All Result
  • Home
  • News
  • Politics
  • Business & Finance
  • Entertainment
  • Sports
  • Tech
  • Relationship and Life
  • Fashion & Lifestyle
  • Food & Nutrition
  • Health
  • Opinion

© 2024 Federalcharacter.com