EXPLAINERNews|Trade War‘Crisis’: Why EU plan for 50 percent tariff is spooking British steelNearly 80 percent of steel products made in the UK are exported to the European Union.
## EU Tariff Adjustments on Steel Imports
EU Tariff Adjustments on Steel Imports
On Tue, the European Commission proposed a reduction in the tariff-free steel import quota within the European Union (EU) from 33 million tonnes to 18.3 million tonnes. Additionally, a 50 percent tariff will be applied to imports exceeding this quota. This proposal is pending approval from EU member states and the European Parliament and is expected to take effect from June 2026.
The United Kingdom (UK) exports approximately 78 percent of its steel to the EU, making it the largest market for UK steel exports. The proposed changes could significantly affect the UK steel industry, which currently faces challenges such as a global supply glut, high energy prices, and existing tariffs from the United States.
The European Union aims to safeguard its steel market from an influx of subsidized steel, particularly from Asia, in response to recent US tariffs on steel imports. The EU's steel production has decreased, and the industry faces intense competition from heavily subsidized production in countries like China.
Additionally, a 50 percent tariff will be applied to imports exceeding this quota.
The UK is engaging in discussions with the EU to address these concerns and explore potential negotiations. The EU has indicated openness to discussions with the UK following formal notification to the World Trade Organization (WTO) about the new levy.
The EU's tariff proposal also serves as a strategic move to engage the United States in discussions about steel tariffs. Recent trade agreements between the EU and the US include levying specific tariffs on European exports, yet negotiations regarding European steel tariffs remain ongoing.
Based on reporting by Al Jazeera.