UK set to confront EU over planned steel trade curbs

The UK is set to challenge EU plans to sharply reduce tariff-free steel imports amid warnings from British producers that the measures could have severe consequences for the sector, The Guardian reported Thursday.

Business Secretary Peter Kyle is expected to raise the issue during talks with EU Trade Commissioner Maros Sefcovic in Brussels on Friday, according to the report.

The dispute follows EU proposals to amend its steel safeguard regime, significantly reducing tariff-free import quotas for non-EU countries from July 1.

Britain's steel industry has warned that the new system could be "devastating" for UK producers, arguing that it would restrict access to one of their most important export markets.

Under the proposed measures, overall tariff-free steel imports into the EU from non-member countries would be reduced by 47% compared with 2024 levels.

The plans have raised concerns on both sides of the Channel, with industry leaders reportedly worried that the dispute could trigger retaliatory trade measures by Britain.

The issue threatens to become a fresh source of friction in UK-EU trade relations despite efforts by both sides to improve cooperation following recent agreements aimed at resetting ties after Brexit.

Steel exports to the EU remain vital for British manufacturers, and industry representatives have urged the government to seek exemptions or alternative arrangements to avoid additional costs and trade barriers.

Discussions between Kyle and Sefcovic are expected to focus on the potential impact of the quota reductions and whether adjustments can be made before the new rules take effect next month.