EU Steel Tariff Hike Sparks Looming Industry Collapse, Warns UK Business Leaders
The European Union's decision to sharply increase tariffs on imported steel has sent shockwaves through the UK's steel industry, with experts warning of a looming crisis that could rival any in history. According to the EU, the tariff hike is aimed at cutting the amount of steel that can be imported into the bloc by half, beyond which the new 50% tariffs will apply.
The move, which has been met with alarm from industry leaders, threatens to cripple British businesses that rely heavily on exporting steel to the EU. Worth nearly £3 billion annually, the EU is the UK's largest export market for steel, representing 78% of all steel products made in the UK for overseas markets. The tariff hike could have devastating consequences for the sector, with some predicting it could be "perhaps the biggest crisis" the industry has ever faced.
The EU's decision comes as no surprise to industry insiders, who have been warning of the dangers of cheap imports from countries like China and Turkey. According to a report by the UK's steel industry association, UK Steel, the sector is already struggling to compete with these low-cost producers. "This tariff hike is a necessary step to protect our domestic industry," said a spokesperson for the EU Commission. "We cannot allow unfair trade practices to continue unchecked."
Industry leaders have expressed their concerns about the impact of the tariff hike on British businesses. "The EU's decision will have far-reaching consequences for the UK steel industry, which has already been struggling to compete with cheap imports," said Gareth Stace, director of UK Steel. "We urge the government to take immediate action to support our sector and prevent a looming industry collapse."
The UK's steel industry is not alone in its concerns about the EU's decision. Other countries, including Germany and France, have also expressed their opposition to the tariff hike. According to Reuters, some member states are already exploring alternative trade agreements with other countries.
In response to the crisis, the UK government has announced plans to hold emergency talks with industry leaders to discuss possible support measures for the sector. However, it remains to be seen whether these efforts will be enough to mitigate the impact of the tariff hike on British businesses.
As the situation continues to unfold, one thing is clear: the EU's decision to increase tariffs on imported steel has set off a chain reaction that could have far-reaching consequences for the UK's steel industry. With the sector already struggling to compete with cheap imports, the tariff hike threatens to push many businesses to the brink of collapse.
Background:
The UK's steel industry has been facing significant challenges in recent years, including global overcapacity and unfair trade practices. According to a report by UK Steel, the sector is already struggling to compete with low-cost producers from countries like China and Turkey. The EU's decision to increase tariffs on imported steel is aimed at addressing these issues and protecting domestic industries.
Expert opinions:
"This tariff hike is a necessary step to protect our domestic industry," said a spokesperson for the EU Commission.
"The EU's decision will have far-reaching consequences for the UK steel industry, which has already been struggling to compete with cheap imports," said Gareth Stace, director of UK Steel.
This story was compiled from reports by BBC Business and BREAKING: BBC Breaking.
