Welsh steel faces drastic impact from EU tariffs hike, warns minister

WALES’ economy secretary has warned of drastic consequences for the future of Welsh steelmaking after the EU announced plans to slash tariff-free import quotas.

- CHRIS HAINES, GEORGE THOMPSON and DAVID HUGHES

Rebecca Evans pledged to do “everything we can” to influence UK-EU talks over plans to cut the amount of tariff-free steel that can be imported into the bloc by nearly half.

The European Commission has disclosed plans to impose 50% tariffs on steel, double the current level of 25%, while cutting tariff-free import volumes to 18.3 million tons a year - a 47% reduction.

The new tariff would effectively match the levy US President Donald Trump previously imposed on the EU and will come as a further blow to British industry, which has already been hit by levies on steel into the American market.

The Welsh Government said it would continue to work with the UK Government to product the industry as Tata Steel continues its transition to greener steel-making.

In September 2024, the last blast furnace at Tata's Port Talbot site was shut down, ending decades of primary steel making in the town. Since then it has been confirmed that more than 2,000 people lost their jobs.

The company, with £500m UK Government funding, is moving to steel-making via a new electric arc furnace which is due to open by the end of 2027.

The EU is the UK’s largest steel export market, worth nearly £3bn.

The new plans were set out following pressure from some member states which have struggled to compete with cheap imports from countries such as China.

Economy Secretary Ms Evans told the Senedd yesterday: “We're extremely concerned [about] the EU's announcement on the new tariff measures, and what they will mean for the steel industry in Wales and the UK”

She stated Labour ministers are pressing their Westminster counterparts to engage in urgent discussions with the European Commission to ensure Welsh steel is not left behind.

Luke Fletcher, Plaid Cymru’s shadow economy secretary, criticised the “panic-mode” UK Government for being “blindsided” by the announcement.