UK metal producers are to be hit by one other spherical of tariffs, even larger and extra impactful than these levied by the US, representing “an existential threat” to the trade.
The European Union (EU) is mountaineering the tax on metal it imports, with the tariff to be 50%, double the 25% presently levied by the Trump administration within the US and the EU’s present fee.
Cash weblog: Large £400 financial institution swap supply – however there is a wage catch
This resolution is an “existential threat”, in keeping with the assistant normal secretary of the Group union, Alasdair McDiarmid.
“Europe is by far the largest destination for UK steel exports, and losing access to this market would have a catastrophic impact on British jobs,” he mentioned.
UK Metal, the metal trade physique, described it as “perhaps the biggest crisis the UK steel industry has ever faced” and known as on the federal government to “secure UK country quotas”.
Please use Chrome browser for a extra accessible video participant
2:35
Way forward for Scunthorpe furnaces?
Establishing a UK nation quota may imply some metal is traded with decrease or no tariffs in any respect.
If this isn’t organized, the trade would “potentially face disaster”, mentioned Gareth Stace, the director normal at UK Metal.
Why is the EU doing it?
The EU is erecting the commerce barrier to keep away from an inflow of metal imports flooding its market within the wake of the US’s tariffs hike and to keep away from making the EU much less aggressive for home producers.
EU commissioner for prosperity and industrial technique, Stephane Sejourne, mentioned the EU was additionally lowering the quantity of metal being imported from overseas to “save our European steel plants and jobs”.
Related measures have been known as for by UK Metal.
“The UK government must now recognise the urgent need to put in place its own measures to defend against a flood of imports,” Mr Stace mentioned.
“The probability of the EU’s measures redirecting millions of tonnes of steel towards the UK could be terminal for many of our remaining steel companies.”
Element of when the coverage will take impact has but to be introduced.
The Division for Enterprise and Commerce has been contacted for remark.
