'Existential threat' What could EU's 50% tariffs on steel mean for British industry?

The EU shocked the UK on Tuesday by announcing a plan for 50% import tariffs on steel. UK Steel, an industry lobby group, said the plan poses an "existential threat" to British steelmakers. Here's what we know about the issue.

- Jasper Jolly Lisa O'Carroll

Why is the UK steel sector so worried?

The EU is the UK's biggest customer: 78% of all UK steel exports, or 1.9m tonnes, went to the bloc in 2024. The prospect of punitive tariffs on a large chunk of that would make many British products uncompetitive overnight.

From 1973 until 2020 the UK was part of the EU, whose forerunner was the European Coal and Steel Community - a single market giving easy access to other members of the trade bloc. Brexit has left the UK out in the cold.

The European Commission has said Norway, Iceland and Liechtenstein, who are not in the EU but are integrated into the single market via the European Economic Area, will not be impacted by the tariffs or quotas.

Why has the EU imposed tariffs on steel?

Its steel industry is struggling. It has plants that have not been modernised for 40 years, one diplomatic trade expert said. Steelmakers have been struggling for years with high energy costs - Germany's are among the highest in Europe (although still smaller than the UK's).

However, the big threat in recent years has been the glut of Chinese steel forcing down global prices, along with the devastating 50% tariff imposed by Donald Trump on US imports of the metal in June.