Wales鈥 Economy Secretary Rebecca Evans has warned of drastic consequences for the future of Welsh steelmaking after the EU announced plans to slash tariff-free import quotas.
Ms Evans pledged to do 鈥渆verything we can鈥 to influence 海角视频-EU talks over plans to cut the amount of tariff-free steel that can be imported into the bloc by nearly half.
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 鈥 a 47% reduction.
The new tariff would effectively match the levy US President Donald Trump previously imposed on the EU and will come as a further blow to British industry, which has already been hit by levies on steel into the American market.
The Welsh Government said it would continue to work with the 海角视频 Government to product the industry as Tata Steel continues its transition to greener steel-making.
In September 2024, the last blast furnace at Tata鈥檚 Port Talbot site was shut down, ending decades of primary steel making in the town. Since then it has been confirmed that more than 2,000 people lost their jobs.
The company, with 拢500m 海角视频 Government funding, is moving to steel-making via a new electric arc furnace which is due to open by the end of 2027.
The EU is the 海角视频鈥檚 largest steel export market worth nearly 拢3bn. As well as Tata other significant players in the Welsh sector are Cardiff-based and Czech-owned 7 Steel 海角视频. The operation, which makes steel from scrap, was recently acquired from former Spanish owners Celsa.
The new EU plans were set out following pressure from some member states which have struggled to compete with cheap imports from countries such as China.
Ms Evans told the Senedd: 鈥淲e鈥檙e extremely concerned [about] the EU鈥檚 announcement on the new tariff measures, and what they will mean for the steel industry in Wales and the 海角视频.鈥
She stated Labour ministers are pressing their Westminster counterparts to engage in urgent discussions with the European Commission to ensure Welsh steel is not left behind.
Luke Fletcher, Plaid Cymru鈥檚 shadow economy secretary, criticised the 鈥減anic-mode鈥 海角视频 Government for being 鈥渂lindsided鈥 by the announcement.
Mr Fletcher told the chamber: 鈥淭his really is crunch time for the Welsh steel industry. The EU decision to almost halve tariff-free quotas for imported steel threatens to cut off access to our biggest export market, with industry leaders warning of this perhaps being the biggest crisis the 海角视频 steel sector has ever faced.鈥
Pointing to Labour鈥檚 pre-general election promises of a new relationship with Europe and to 鈥渕ove mountains for steel鈥, he said: 鈥淵et, a year on for Port Talbot, here we are again.鈥
Mr Fletcher called for action to ensure Welsh plants, such as Port Talbot and Llanwern, are not left to bear the brunt of a tariff war between Brussels and Washington 鈥 with the EU鈥檚 move widely seen as a response to US tariffs.
鈥淥ur steel communities can鈥檛 take much more,鈥 he said. 鈥淎nd there鈥檚 already a track record from the Labour 海角视频 Government of safeguarding steel plants in England.鈥
Ms Evans replied: 鈥淭he EU鈥檚 proposal clearly has the potential to have drastic consequences for the Welsh steel sector at a time when鈥 it is already under immense trading pressure due to the US tariffs and global overcapacity.鈥
Labour鈥檚 David Rees, who represents the Senedd鈥檚 cross-party group on steel, urged Welsh ministers to press the case with European partners as well as 海角视频 ministers.
The Aberavon Senedd member called for Wales to have a voice in negotiations to protect the country鈥檚 interests in securing a tariff-free quota and reduced tariffs for 海角视频 steel.
Ms Evans agreed that whatever emerges must work well for Wales as well as the 海角视频. She pledged: 鈥淲e鈥檒l do everything we can to have the most influence we can in those discussions, setting out exactly how important this is to Wales.鈥
Samuel Kurtz, the Conservatives鈥 shadow economy secretary, warned steel products from China could flood the 海角视频 as a result of continental markets closing their doors.
Mr Kurtz also expressed concerns about the 海角视频鈥檚 comparatively high electricity costs amid a transition away from blast furnaces to an electric-arc furnace at Port Talbot.
Labour鈥檚 John Griffiths, who represents Newport East 鈥 which includes the Llanwern finishing plant 鈥 warned steel is in a vulnerable position following the 海角视频鈥檚 exit from the EU.
Ms Evans replied: 鈥淚 absolutely agree it鈥檚 really important that we consider our steel sector in its entirety here in Wales and that we make sure that the decisions that are taken now by the 海角视频 Government reflect the entirety of our steel industry.
鈥淭hat鈥檚 why it鈥檚 so important, as well, that we continue our discussions with the unions because they have a really good feel of the situation on the ground and they have good ideas, as well, as to how we can continue to address this issue.鈥
The Senedd鈥檚 economy committee will take evidence on the future of Welsh steel today, hearing from Tata Steel 海角视频 chief executive Rajesh Nair and trade unions.
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 海角视频 Steel trade association warned that access to Britain鈥檚 most important export market, which is currently the destination for 78% of British steel, could be 鈥渟everely curtailed鈥 by the move. It called for the 海角视频 Government to negotiate preferential treatment for the 海角视频 and for 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. 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
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
海角视频 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
