The European Union’s ambassador to the 海角视频 has defended planned hikes in steel tariffs as officials in Whitehall attempted to limit the potentially catastrophic impact on British workers.
The European Commission has disclosed plans to impose 50% tariffs on steel, double the current level of 25%, while cutting tariff-free import volumes to 18.3 million tons a year – a 47% reduction.
The EU’s ambassador Pedro Serrano said official-level contacts had already been made between Whitehall and Brussels about the proposals but he stressed the need for Brussels to defend the bloc’s steel industry.
It comes as Tata Steel, due to weak orders, has confirmed it will halt steel production at its Port Talbot, Trostre and Llanwern operations for five weeks, which will cover December and run into January. The stoppages are far longer than the usual two-week wind down around the festive the period.
Talks between the 海角视频 and the EU are expected to cover issues including how much steel the 海角视频 will be allowed to export tariff-free into the bloc.
The measures are aimed at protecting the EU’s steelworkers from competition from cut-price products – especially from China – being dumped in European markets after Donald Trump’s tariffs made the US a less attractive destination.
The proposed new EU regime, which has not yet been adopted, is intended to replace existing safeguards which expire in June next year.
The 海角视频 currently imports more steel from the EU than it exports into the single market – around 3.7 million tonnes compared to 1.6 million tonnes exported. Currently, 海角视频 quotas on imported EU steel don’t really apply, as they range from 70% to 140% of domestic demand.
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It is hoped that the 海角视频 will have significant leverage to negotiate a more equitable trading arrangement with the EU on steel than currently proposed. As it stands, the new EU measures would take effect next summer.
The industry said a tougher 海角视频 quota and tariff regime will be needed to prevent a flood of cheaper imports, from producers in countries such as China and Vietnam, seeking a new home for steel that would have been targeted for the EU marketplace.
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.”
Mr Serrano said: “It’s an important proposal. It has to replace the system of safeguards that exist currently, that will expire in June ‘26, and we need to have a system of safeguards, because there’s an overcapacity of steel production, as you will know, worldwide.
“And in addition, there are countries that are increasing their protectionist measures also in steel. So we have to protect the steel industry in the European Union.”
But he said talks would take place with states like the 海角视频 which have a trade deal with the EU which would consider “country-specific allocation” of the tariff-free quota.
He said “contacts have already taken place with 海角视频 officials and discussions will continue”.
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Sir Keir Starmer has previously said the 海角视频 was “in discussions” with the EU about the proposals, which have sounded alarm bells within the beleaguered British steel industry.
The 海角视频 Steel trade association warned that access to Britain’s most important export market, which is currently the destination for 78% of British steel, could be “severely curtailed” by the move.
MP for Aberavon Stephen Kinnock and MS for the town, David Rees, have also called on the 海角视频 Government to move quickly to introduce measures to support domestic steel production against a flood of imports.
In a joint statement they said: “President Trump’s decision to hugely increase tariffs on steel going into the US is having a devastating knock-on impact on 海角视频 steel because large quantities of steel that should have been going to America are now being diverted and dumped on us.
This diversion and dumping are leading to a collapse in domestic demand for Port Talbot steel, as we are being undercut on price by a glut of product from places like China and Vietnam.
There is only one way to respond to this, which is for the 海角视频 Government to urgently increase tariffs and decrease quotas, to stop our steel being unfairly undercut.
“海角视频 steel makers are under attack, and we must take action to defend them through enhanced trade defence measures. Following the EU’s announcement of their proposals to increase tariffs on imported steel we have already sought a meeting with 海角视频 ministers to tackle this issue. This latest announcement by Tata highlights the urgency of such action to protect the future of steel across the 海角视频, and in particular for steel sites in South Wales.
We will continue to make this case to 海角视频 government ministers, and with increased intensity, because it is now very clear that the last country to protect its steel industry will be the first country to lose it.”
Global steel overcapacity stood at over 600 million tonnes in 2024, representing 24% of total capacity. The OECD forecasts this to increase to 721 million tonnes by 2027, in part driven by China, where steel producers receive state subsidies around ten times the OECD average.