Athira Sethu
Kochi, 9 October 2025
The European Union (EU) has proposed raising tariffs on imported steel, which may be a huge setback for the British steel industry. The British steel industry is already in trouble, and the latest action has been expressed as causing fear that the industry might face “perhaps the biggest crisis” ever.
The EU has proposed to limit the level of steel that can be imported without additional fees. From next year, steel imports are capped at 18.3 million tonnes yearly, which is a sharp reduction of nearly 50% from 2024 levels. If the limits are surpassed, there will be a 50% duty imposed on the steel imports. This is a clear attempt to counter cheap steel imports from the likes of China and Turkey, which have been hurting domestic steel producers in Europe.
The EU is the UK’s biggest steel market for imports, importing nearly £3 billion worth of steel products annually, representing approximately 78% of total UK steel exports. Due to this, the new tariffs hit the UK particularly hard. The UK government has already had its share of problems this year with Chinese-owned steel mills being taken over and Liberty Steel mills falling into disarray, which has resulted in greater government interference.
The UK steel sector has also suffered from the halt of an agreement that would have eliminated tariffs on UK steel exports to the US. This added insult to injury for UK steel manufacturers, who are already fighting for survival. Prime Minister Rishi Sunak has vowed robust support for the UK steel sector, but it is not yet certain how the government will react to the EU’s move.
The Union of Community, which is the representative for UK steelworkers, referred to the new EU steps as an “existential threat” to the sector. EU trade commissioner Maros Sefcovic stated that he would engage with the UK on how to resolve the issues and suggested negotiations that might lead to a special quota for the UK in the future.
The UK government has indicated that it is striving to get a clear understanding of how the new tariffs will affect UK steel. Industry Minister Chris McDonald made it clear that it was vital to ensure UK-EU trade is preserved and vowed to continue exploring ways to defend UK steel manufacturers. The government is also set to meet with steel industry representatives to make them aware of their concerns.
