The European Union (EU) is expected to announce a new package of trade protection measures next week, including a plan to reduce steel import quotas from non-EU countries by nearly 50%. This proposal is seen as a reflection of the French initiative, which is supported by 11 EU member states, including Spain and Italy, and the European Steel Association (EUROFER). This plan calls for cutting current import quotas by 40-50%, while imposing a 50% tax on steel exceeding the quota.
For Britain, this move is seen as a “second strike” after the heavy tariffs imposed by the administration of US President Donald Trump. About 1.9 million tons of the total 4 million tons of steel Britain produces annually is exported to the EU - a market that accounts for more than half of this country's export output. Meanwhile, the US only imports about 200,000 tons of steel from Britain each year.
“As a non-EU country, we are concerned that these measures are even worse than the US tariffs,” a British steel exporter told Politico. “The new rules will directly impact our exports and cause adverse trade diversion.”
Lisa Coulson, commercial director of British Steel, said: “We are particularly concerned by reports that the European Commission is considering a major cut in steel import quotas. This could see UK manufacturers cut out of their largest export market, while we are still facing a 25% tariff in the US.”
The EU’s move is “very significant” and is being “closely watched” by the steel industry and the UK Department for Business and Trade, said Carmen Suarez, co-director of the UK Trade Remedies Authority. She said the proposal could have a significant impact on the UK steel industry at a time when supply chains are under pressure.
According to Politico, the EU is expected to adopt new protection measures in mid-October. EU Trade Commissioner Maros Sefcovic said: “We will apply a strong trade protection measure in the coming time.” An EU diplomat commented that, in the context of the US increasing import tariffs, the EU tightening quotas is “necessary to protect the domestic steel industry”.
“Together with the US, we are working to protect our steel production. Hopefully this will help normalise transatlantic steel trade and remove US tariffs. However, we also need to act to address global overcapacity, especially from China,” Matthias Jorgensen, head of the European Commission’s trade department in charge of relations with the US and Canada, told the Competitive Europe Summit in Brussels.
However, British industry warned that the EU’s cut of steel import quotas by nearly half would leave Britain “losing its biggest market”. A British steel industry representative called it “one of the biggest disasters ever to hit the British steel industry”, saying “the whole industry is on high alert”.
In that context, the trade relationship between London and Brussels - which has improved in recent months - is at risk of being seriously affected. A British government official revealed that the EU has not yet officially informed London of the plan.
The UK government said it was still awaiting details from Brussels, adding: “We are committed to protecting the future of the British steel industry, with up to £2.5 billion invested to rebuild domestic steel production and looking at stronger trade measures to prevent unfair competition.”
Source: https://baotintuc.vn/thi-truong-tien-te/eu-siet-han-ngach-nhap-khau-thep-day-nganh-cong-nghiep-anh-toi-nguy-co-cu-soc-kep-20251006133858665.htm
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