Steel

The warning comes two days after the UK government took control of Chinese-owned British Steel using emergency powers.

The UK government has faced increasing pressure to preserve the country’s own steelmaking industry, in order to reduce dependence on other countries for the metal.

As reciprocal tariffs kick in, the EU is expecting goods formerly destined for the US to seek EU markets, with Chinese renewables, steel and electronics topping a list of products the Commission is keeping its eye on.

The European Commission presented on Wednesday an action plan for the steel and metals industries. In a sector marked by strong international competition, the European executive plans to tighten import quotas with an objective of 15% reduction.

The EU plans to tighten controls on steel and aluminium imports to prevent market dumping and restrict countries from blocking waste metal imports.

In its response to the US tariffs on steel and aluminium, the EU is aiming to be ‘smart’ and hit US Republican-leaning states.

US President Donald Trump officially imposed 25% tariffs on steel and aluminium imports, sparking selloffs in the stock markets, and a further surge in gold prices.

The Commission has pledged an action plan for the steel industry to be launched in mid-March, days after US President Donald Trump’s threatened tariffs against the sector are slated to come into force, beckoning the onset of a trade war.

The firms accuse the Biden administration of blocking the merger for “purely political reasons”.