EU threatens 50% steel industry tariffs leaving domestic exporters in crisis
Sam Sepehri
12th October 2025
Written by Sam Sepehri
In a bold response to the flooding of European steel markets by low-cost Asian producers, the European Union has announced a 50 percent tariff hike on all steel imports from foreign nations including the United Kingdom. The decision has been framed by Brussels as a necessary move to protect its struggling steel sector, but it has immediately provoked backlash from UK industry leaders.
Community Union chair Alistair McDiarmid has described the move as an “existential threat” to British steel, warning that “Europe is by far the largest destination of UK steel exports.” At present, Britain exports around 1.9 million tonnes of steel annually to the EU accounting for roughly 78 percent of total UK exports. Industry figures warn that such tariffs could effectively price British producers out of the European market
In response, leading voices within the domestic industry are urging Prime Minister Keir Starmer to introduce countermeasures or risk “disaster,” with increasing risks of plant closures and thousands of jobs lost.
The policy appears to be part of a ripple effect from former U.S. President Donald Trump’s tariff plan, which forced Asian exports toward Europe, placing additional pressure on EU producers. Brussels’ retaliation has left UK producers in a vulnerable position, where they are unable to compete in foreign markets unless offered an exemption.
Financial markets have reacted instantly, with shares in ArcelorMittal, Europe’s largest steelmaker, rising more than 4 percent following the announcement, as investors anticipated higher domestic prices and reduced competition. Unsurprisingly, UK producers saw immediate declines, with investors facing fears of massive drops in export revenue.
As Europe and Britain brace for the reactions from the announcement, the Prime Minister is dealt another blow as growing pressures from unions force him to face the realities of post-Brexit trade.
