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.
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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’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 but we are in discussions, as you’d expect.”
European Commission president Ursula von der Leyen said global overcapacity is damaging industry, adding that officials “need to act now”. 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.
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Gareth Stace, director-general at 海角视频 Steel, said: “This 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.
“The 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’s measures redirecting millions of tonnes of steel towards the 海角视频 could be terminal for many of our remaining steel companies.”
Alasdair McDiarmid, assistant general secretary at the Community trade union, said: “Given that around 80% of the 海角视频’s 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.
“This 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’s proposal poses.”
He said the Government must move “swiftly to negotiate preferential treatment for the 海角视频” and tighten trade defence measures.
Charlotte Brumpton-Childs, GMB union national officer, called the measures a “hammer blow” to the 海角视频 steel industry. She said: “This could be the end of steel-making in the 海角视频 if proper safeguards aren’t secured.”
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 海角视频.
“It’s 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’ woes.”