The European Union will match President Donald Trump’s steel tariffs, sparking fears of economic fallout in the already strained UK steel industry.
Since 80% of British exports go to the EU, the additional tariffs would be disastrous for the U.K. steel industry, according to a lobbying group that represents the industry. According to unions, the tariffs might destroy the sector, according to The Guardian.
The plan proposed by the European Commission would nearly raise the tariff rate to 50% and drastically reduce the amount of steel that can be imported into the EU duty-free to 18.3 million tons annually.
According to the New York Times, the EU wants to reduce global overcapacity, which damages European steel jobs by importing cheap steel from China. Additionally, it is a response to Trump's steel tariffs on the EU.
"Global overcapacity is damaging our industry,"
European Commission President Ursula von der Leyen said in a statement.
"We have global overcapacity, unfair competition, state aid, and undercutting in prices, and we are reacting to that,"
Stéphane Séjourné, the European Commission's executive vice president for prosperity and industrial strategy, said at a news conference at the European Parliament in Strasbourg, France.
"Eighteen thousand jobs were lost in the steel sector in 2024. That's too many, and we had to put a stop to that.
The European steel industry was on the verge of collapse -- we are protecting it so that it can invest, decarbonize, and become competitive again,"
Séjourné said.
U.K. Prime Minister Keir Starmer told reporters during a flight to India that officials were in discussions with the EU about the tariffs, according to The Guardian.
"In relation to the question of tariffs or other measures, as you'd expect, we are in discussions with the EU about this, as we're in discussions with the U.S. about it,"
Starmer said.
"So I'll be able to tell you more in due course, but we are in discussions as you'd expect."
How might China respond diplomatically or with countermeasures?
China usually raises issues via its diplomatic channels, indicating that these measures infringe WTO rules and run the risk of global commerce disruption. Beijing may enter bilateral or multilateral discussions to reach a solution in terms of either lifting or relaxing these restrictions.
China has prior experience in imposing tariffs on EU goods and products or imposing other import restrictions as reciprocal measures.
This could include targeting specific exports from the EU to China or limiting access to rare earth minerals and other strategic materials, all of which are important for European manufacturing.