London, October 8(HS): The European Union has announced plans on wednesday to halve the quota of tariff-free steel imports into the bloc and introduce a 50% duty on volumes above the new limit, triggering alarm in Britain’s steel sector. Industry leaders warn the move could mark “perhaps the biggest crisis” in the UK’s modern steelmaking history.
Under the proposal, the EU will cut annual tariff-free quotas to 18.3 million tonnes — a 47% reduction from 2024 levels — with the measures expected to take effect early next year, pending approval by EU member states and the European Parliament.
The bloc says the move is intended to protect its steel industry from cheap imports from countries such as China and Turkey.Stephane Séjourné, the European Commission’s Executive Vice-President for Prosperity and Industrial Strategy, said 18,000 steel jobs were lost in 2024 and action was needed to prevent further damage.
The UK, which exports nearly £3 billion worth of steel to the EU annually — representing 78% of its overseas steel sales — could be deeply affected. British Steel plants in Scunthorpe and Liberty Steel operations in Rotherham and Stocksbridge are already under government control due to financial distress.
Prime Minister Sir Keir Starmer, speaking en route to India, said there would be “strong support” from the government for the sector, though he declined to confirm whether exemptions were being sought. Industry Minister Chris McDonald stressed the need to protect UK-EU trade flows and promised urgent talks with steelmakers this week.
Gareth Stace, Director General of UK Steel, urged the government to secure UK-specific quotas to avoid “disaster” and warned that surplus steel diverted from EU markets could “prove terminal” for many British producers.
The Community Union described the EU’s plan as an “existential threat” to the industry.The move follows a global trend of protective measures, with the United States, Canada, Mexico, and Brazil all tightening restrictions in response to concerns over Chinese exports and shifting trade flows.
European Trade Commissioner Maros Sefcovic said he would “fully engage” with the UK and hinted that a special quota arrangement could be discussed in future negotiations.
Business representatives, including Liam Bates of Sheffield-based Marcegaglia, called the announcement a “big blow” and urged the government to pursue reciprocal treatment from the EU. He warned the tariffs could immediately strain existing customer relationships and threaten long-term business viability.
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Hindusthan Samachar / Jun Sarkar
