Steel industry in UK warns of 'biggest crisis' ever as EU hikes tariffs

Core Viewpoint - The European Union has announced a significant increase in steel tariffs and a reduction in import quotas, which has raised concerns in the U.K. steel industry and among European car manufacturers [2][4][14]. Group 1: EU Tariff Changes - The EU plans to reduce tariff-free quotas on imported steel by 47% compared to 2024 quotas and increase tariffs from 25% to 50% on excess imports [2]. - These measures are intended to provide strong protection for the EU steel industry, safeguard jobs, and support decarbonization efforts [3]. Group 2: Impact on the U.K. Steel Industry - The U.K. steel industry is already facing significant challenges, including closures and job losses, and the new tariffs could exacerbate this crisis [4][6]. - The EU accounts for approximately 80% of U.K. steel exports, making the tariffs a potential threat to access its largest market [7]. Group 3: Reactions from Industry Stakeholders - The U.K. government is urged to leverage its trading relationship with the EU to secure country quotas to avoid disaster for the steel sector [6]. - The European Automobile Manufacturers' Association (ACEA) has expressed concerns that the new measures could negatively impact the domestic car industry, which relies heavily on EU-sourced steel [14]. Group 4: Broader Context - The EU's actions follow similar tariff measures by the U.S. and Canada aimed at protecting their domestic steel industries from cheaper imports, particularly from China [9]. - The EU has indicated a willingness to exempt certain countries, such as Ukraine, from these duties, highlighting the need for a balanced approach [12].