EU eyes steel industry protections, rattling UK manufacturers

The European Union proposed on Tuesday cutting free-trade quotas by 47% on steel and steel products, effectively adding large tariffs on imports from countries like China, India, Turkey, and the United Kingdom, which said the measures would wreck the British steel industry.

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After importing 18.3 million tons, the new quota, additional imports will face up to 50% in new tariffs, a high price akin to U.S. President Donald Trump's steel measures. Neighboring nations like Norway, Iceland and Ukraine will be exempt.

The proposal attempts to buttress Europe's traditional steel manufacturers by imposing trade barriers to stem the flooding of Europe's markets with imports diverted by those high American tariffs.

Steel importers would be required to clearly declare where the products were melted and poured, and a complex quota system would govern what enters the EU common market.

The proposal replaces a current steel safeguard policy aligned with the World Trade Organisation that is set to expire in June 2026.

“A strong, decarbonised steel sector is vital for the European Union's competitiveness, economic security and strategic autonomy. Global overcapacity is damaging our industry,” said European Commission President Ursula von der Leyen.

European Parliament and the European Council must now ratify or amend the proposal, which then might require negotiations with the WTO to check how member countries are affected by the measures.