The Government has confirmed it is in talks with the European Union over a steel tariff hike which unions have warned poses an "existential threat" to the 海角视频 industry. Yesterday the EU announced it would impose a swingeing 50% tariff on steel, double its current level, while cutting tariff-free import volumes by 47% to 18.3m tonnes per year.
The Community union said the measures pose an existential threat given about 80% of 海角视频 steel exports go to Europe. It comes as the domestic steel industry is already facing upheaval in the face of levies on steel into the US market and growing energy costs which led to the Government's rescuing of British Steel's Scunthorpe plant from closure earlier this year.
That was followed by further state intervention as the country's third-largest steelworks in Rotherham and Stocksbridge in South Yorkshire came under Government control in the face of owner Speciality Steel's compulsory liquidation with millions of pounds of debts owed.
En route to a trade visit to India, the Prime Minister was asked if he thought the EU would go ahead with plans to match US steel levies. He said: "I think our position in relation to our steel industry is one of strong support as you saw from Scunthorpe and Port Talbot.
"In relation to the question of tariffs or other measures, as you鈥檇 expect, we are in discussions with the EU about this, as we鈥檙e in discussions with the US about it. So I鈥檒l be able to tell you more in due course but we are in discussions, as you鈥檇 expect.鈥
European Commission president Ursula von der Leyen said global overcapacity is damaging industry, adding that officials 鈥渘eed to act now鈥. The commission has been under pressure from some member states which have struggled to compete with cheap imports from countries such as China.
The plan, which was presented to the European Parliament on Tuesday, is also intended to strengthen the traceability of steel. It would replace the current steel safeguard measure, which is due to expire in June 2026.
Warnings from trade association 海角视频 Steel stress the importance of the EU market for British Steel. It has called for the Government to seek preferential treatment for the 海角视频 and Britain to have its own import quotas.
Gareth Stace, director-general at 海角视频 Steel, said: 鈥淭his is perhaps the biggest crisis the 海角视频 steel industry has ever faced. Government must go all out to leverage our trading relationship with the European Union to secure 海角视频 country quotas or potentially face disaster.
鈥淭he 海角视频 Government must now recognise the urgent need to put in place its own measures to defend against a flood of imports. The probability of the EU鈥檚 measures redirecting millions of tonnes of steel towards the 海角视频 could be terminal for many of our remaining steel companies.鈥
Alasdair McDiarmid, assistant general secretary at the Community trade union, said: 鈥淕iven that around 80% of the 海角视频鈥檚 steel exports go to Europe, the new measures proposed by the EU represent an existential threat to our industry, as well as the thousands of jobs and communities it supports right across the country.
鈥淭his 海角视频 Government has consistently shown that it values and backs our steel industry, and we know that ministers will be acutely aware of the grave risks the EU鈥檚 proposal poses.鈥
He said the Government must move 鈥渟wiftly to negotiate preferential treatment for the 海角视频鈥 and tighten trade defence measures.
Charlotte Brumpton-Childs, GMB union national officer, called the measures a 鈥渉ammer blow鈥 to the 海角视频 steel industry. She said: 鈥淭his could be the end of steel-making in the 海角视频 if proper safeguards aren鈥檛 secured.鈥
Industry minister Chris McDonald said: 鈥淲e 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 海角视频.
鈥淚t鈥檚 vital we protect trade flows between the 海角视频 and EU and we will work with our closest allies to address global challenges rather than adding to our industries鈥 woes.鈥
