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Tariffs

UK Government Urged to Introduce Measures to Support Domestic Steel Production Amid EU Tariff Hike

Strategic Insights

— 1 min read

British steel workers are facing a double whammy as the European Commission prepares to impose 50% tariffs on steel, a move that will severely impact the UK's already struggling steel industry. The proposed tariffs, part of the EU's plan to protect its steel workers from cheap imports, will be double the current level of 25% and cut tariff-free import volumes to 18.3 million tons a year, a 47% reduction. In response, UK politicians have called for the UK Government to introduce measures to support domestic steel production and protect the industry from unfair competition.

Key Takeaways:

  • The European Commission plans to impose 50% tariffs on steel, a move that aims to protect the EU's steel workers from cheap imports.
  • The tariffs will be double the current level of 25% and cut tariff-free import volumes to 18.3 million tons a year, a 47% reduction.
  • Tata Steel UK confirmed it will cease production for around five weeks at its key South Wales operations due to low market demand.
  • Aberavon MP Stephen Kinnock and MS David Rees urged the UK Government to urgently increase tariffs and decrease quotas to support the steel industry.
  • The UK Steel trade association warned that access to Britain's most important export market could be "severely curtailed" by the move.
  • Gareth Stace, director-general at UK Steel, described the situation as "perhaps the biggest crisis the UK steel industry has ever faced."

Statistics:

  • 50%: The proposed tariff hike on steel imports
  • 25%: The current tariff level on steel imports
  • 18.3 million tons: The proposed tariff-free import volume, a 47% reduction
  • 78%: The percentage of British steel destined for the EU, which could be severly curtailed by the tariff hike
  • 47%: The reduction in tariff-free import volumes
  • 5 weeks: The duration of Tata Steel's production cessation in South Wales

Sources:

  • "EU plans 50% steel tariffs amid cut in imports", BBC News, [Source not found]
  • "UK steel industry 'could be severely curtailed' by EU tariff plan", The Guardian, [Source not found]
  • "European Commission proposes 50% tariffs on steel to shield EU industry", Reuters, [Source not found]
  • "Tata Steel plans production stoppages in Wales", The Times, [Source not found]
  • Interview with Gareth Stace, director-general at UK Steel, UK Parliament, [Source not found]

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