Summary
The European Union plans to reduce its tariff-free steel import quota and impose a higher tariff on excess imports. This change could significantly affect the United Kingdom's steel industry, which sends most of its steel exports to the EU. The EU aims to protect its market from increased foreign steel imports partly caused by President Trump's tariffs.
Key Facts
- The EU plans to cut its tariff-free steel import quota by 47%, from 33 million tonnes to 18.3 million tonnes.
- A 50% tariff will apply to steel imports that exceed this new quota.
- The new tariff rules are expected to start in June 2026, pending approval from EU countries and the European Parliament.
- The UK exports nearly 80% of its steel to the EU.
- The EU cites a need to protect its market from subsidized Asian steel and address global overcapacity.
- The EU steel industry has lost more than 30,000 jobs since 2018 and employs about 300,000 people now.
- China's steel production, heavily subsidized, exceeds 1 billion metric tonnes annually.
- The EU's steel production is 126 million tonnes per year, but it only uses 67% of this domestically.
