EU tariffs are 'existential threat' to British steel industry
The British steel industry is facing an “existential crisis” after the European Union announced it would hit the UK with 50 per cent tariffs, unions have said.
This afternoon, the European Commission announced it was cutting the amount of tax-free steel that can be imported into the bloc, and also doubling its tariff rate to protect the European steel industry.
However, this could have a catastrophic effect on the British steel sector, which exports 78 per cent of its goods to the EU.
The Community Union, which represents workers at British Steel in Scunthorpe, described this as an “existential threat”.
Assistant general secretary Alasdair McDiarmid said: "The new measures proposed by the EU represent an existential threat to our steel industry.
“Europe is by far the largest destination for UK steel exports, and losing access to this market would have a catastrophic impact on British jobs.
“Steel is the lifeblood of communities across the UK: it provides well-paid employment and supports regional economies.
“Losing these vital jobs would wreak devastation on some of the areas which can least afford it, and which have already borne the scars of damaging deindustrialisation.”
The EU has been heavily hit by President Donald Trump’s 50 per cent steel tariffs on all countries apart from the UK.
This has meant Chinese steel has been diverted from the US and has flooded the European market.
Mr McDiarmid added: “Global overcapacity is a shared challenge and it is in both the UK and the EU's interests to work together to find a solution.
“A trade war, at what is already a turbulent time for the global steel industry, would be incredibly damaging for everyone involved, with workers in the UK and Europe paying the heaviest price.
“The stakes could not be higher, and time is of the essence.
“We would urge the UK and EU to begin urgent negotiations and do everything possible to prevent the crushing impact these proposals would have on our steel industry.”
The move comes not long after the Government took control of the British Steel plant in Scunthorpe over the summer.
This is the only site in the UK which can produce virgin steel, and was on the verge of being shut by its Chinese owners Jingye.
Sir Keir Starmer said it would have been a national security risk to lose the British Steel plant, and the Government took control to ensure the raw materials were purchased to keep the blast furnaces online.
However, now the EU tariffs look set to put the UK’s entire steel industry at risk.
The sector has been teetering on the edge, with the US tariffs already affecting trade.
However, the amount of steel exported to Europe dwarfs that which crosses the Atlantic.
Gareth Stace, director-general of the trade body UK Steel, said the Government has “go all out to leverage our trading relationship with the EU to secure UK country quotas or potentially face disaster”.
He said: “This is perhaps the biggest crisis the UK steel industry has ever faced.
“The UK government must now recognise the urgent need to put in place its own measures to defend against a flood of imports.
“The probability of the EU’s measures redirecting millions of tonnes of steel towards the UK could be terminal for many of our remaining steel companies.”
A government spokesman said: “We continue to work closely with EU partners as we await the full details of these plans from and their impact on UK businesses.
“The government will continue to fully back the British steel industry, protecting skilled jobs and supporting economic growth, as part of our Plan for Change. That is why we have committed up to £2.5 billion of investment to rebuild the industry, and are exploring stronger trade measures to protect UK steel producers from unfair behaviours.”