The UK steel industry is bracing for what insiders are calling its most severe crisis in decades, following a dramatic move by the European Commission to slash tariff-free steel import quotas and double out-of-quota tariffs. The new proposal, unveiled in Brussels, would reduce the EU’s annual quota from 30.5 million tonnes to just 18.3 million tonnes, while hiking tariffs on excess imports to 50%. This rollback would return EU import volumes to levels last seen in 2013, a third lower than the 27.4 million tonnes imported in 2024.
Gareth Stace, director-general of
UK Steel, warned: “This is perhaps the biggest crisis the UK steel industry has ever faced. Government must go all out to leverage our trading relationship with the European Union to secure UK country quotas or potentially face disaster.”
The EU is by far the UK’s most important export market, accounting for 78% of all steel exports — 1.9 million tonnes in 2024 alone. The prospect of losing access to this market has sent shockwaves through the sector, with fears that displaced steel could flood the UK market, where demand stood at just 9.2 million tonnes last year.
Alasdair McDiarmid, assistant general secretary of the
Community trade union, echoed the urgency. He said: “Given that around 80% of the UK's steel exports go to Europe, the new measures proposed by the EU represent an existential threat to our industry, as well as the thousands of jobs and communities it supports right across the country.”
Tighter domestic import controlsThe UK Government is under mounting pressure to respond decisively. Industry leaders are calling for two immediate actions — negotiating preferential treatment with the EU, including country-specific quotas, and implementing tighter domestic import controls to prevent a surge of redirected steel.
Mr McDiarmid added: “This UK Government has consistently shown that it values and backs our steel industry. It is vital that the Government moves swiftly to negotiate preferential treatment for the UK, including through country-specific quotas. This development also highlights the urgent need for tightened trade defence measures from the UK.”
The EU’s move is part of a broader global trend, with governments worldwide taking steps to shield their domestic industries from heavily subsidised steel exports, particularly from Asia. While the EU is reacting to imports taking up 25% of its market, the UK faces a far more precarious situation, with imports accounting for a staggering 70% of domestic demand.
As the UK steel sector awaits clarity on its future access to the EU market, the stakes could not be higher. Without swift and strategic intervention, industry leaders fear the fallout could be terminal for many of Britain’s remaining steelmakers.