The UK is considering options for responding to European steel tariffs

The UK is developing countermeasures against the EU’s proposed steel tariff increases in case it fails to reach an agreement to mitigate their impact. This was reported by Bloomberg, citing sources.

The issue is being considered after the country’s steel industry warned that European plans could lead to the biggest crisis in its history.

The British government is also considering how to speed up the replacement of its own protective measures on steel, which expire in June, and to tighten import quotas, insiders said.

Although the sources did not specify what steps are being considered in response to Europe, any escalation would mark a shift in the UK’s position, which has so far sought to avoid trade wars. It would also raise new questions about efforts to rebuild ties with Brussels.

EC spokesman Olof Gill said the EU would work with all partners in the free trade agreement, explain the new measures and their implications, and discuss further action. At the same time, the bloc will continue to emphasize the need for a collective decision to address the problem of global overcapacity.

According to the British government’s estimates, the new European measures will have a significant impact on the country’s steel industry. The EU market is critically important for the industry, with more than three-quarters of UK rolled steel exports shipped to the bloc last year.

However, according to one source familiar with the sector’s views, Britain is also a large enough buyer of European steel for the threat of retaliatory tariffs to cause concern in Brussels.

It should be recalled that in October this year, the European Commission presented a significant strengthening of protective measures on steel imports. The EC’s statement caused concern among the bloc’s trading partners. In particular, even before the proposal was announced, British steelmakers indicated that the reduction in the bloc’s quotas threatened them more than US tariffs.