EU’s 50% steel tariffs spark fears for Tata jobs in Port Talbot and Llanelli
Tariffs slash export access
The European Commission has announced plans to halve the amount of steel that can be imported tariff‑free into the bloc. Beyond that quota, a 50% duty will apply.
The EU is the UK’s largest steel export market, worth nearly £3bn a year and accounting for 78% of all UK steel exports. Industry leaders say the move could trigger “perhaps the biggest crisis” the sector has ever faced.
The Commission says the measures are designed to protect European producers from cheap imports from China and Turkey, with executive vice‑president Stéphane Séjourné warning: “Eighteen thousand jobs were lost in the steel sector in 2024. That’s too many, and we had to put a stop to that.”
South Wales in the spotlight
Tata’s Port Talbot works — once the beating heart of Welsh steelmaking — is already undergoing a painful transition. The blast furnaces shut down last year with the loss of more than 2,000 jobs (our coverage here).
The company, backed by £500m of UK government support, is investing £1.25bn in a new electric arc furnace expected by 2027, which it says will cut emissions by 90% and safeguard 5,000 jobs (full story).
The Trostre tinplate works in Llanelli, which supplies packaging steel to major food and drinks companies, is also heavily reliant on EU trade. Local politicians have already warned that Tata’s current plans could put Trostre at risk (read more). Any disruption to exports could undermine the plant’s long‑term viability.
Union anger
Unite general secretary Sharon Graham said the government must act decisively:
“UK steel must be backed for the long term. The current piecemeal approach isn’t working. Without delay the UK must introduce strict rules to ensure that all UK infrastructure developments and all public sector projects use domestically produced steel.”
The Community union described the EU’s move as an “existential threat”, while UK Steel warned that without a negotiated UK quota, the measures could be “terminal for many of our remaining steel companies”.
Political reaction
Welsh Government called the announcement “extremely concerning” and pledged to work with Westminster to protect jobs and skills. A spokesperson said:
“Wales’ steel industry is a fundamental part of our nation’s future. We will continue supporting workers through the shift to greener production in all ways that we can.”
Prime Minister Sir Keir Starmer, speaking en route to India, promised “strong support” for the industry but gave no details on whether exemptions or quotas were being sought.
Industry Minister Chris McDonald said the UK was “pushing the European Commission for urgent clarification” and would continue to explore stronger trade measures to protect producers.
The announcement comes just months after the UK secured funding to support Port Talbot’s transition (our report) and amid ongoing criticism of how steelworkers have been treated (coverage here).
Global pressures
The EU move follows similar protectionist steps in the US, Canada, Mexico and Brazil, all responding to a glut of cheap steel from China and Turkey.
UK producers warn the measures could redirect millions of tonnes of steel towards Britain, flooding the domestic market and crushing already fragile firms. Industry sources say the implementation of the EU’s plan could spell the end of UK steelmaking — a fear echoed when Donald Trump’s US administration imposed tariffs in 2024 (our report).
What’s next for Port Talbot and Trostre?
For Port Talbot, the tariffs come at a critical moment in the transition to greener steelmaking. While the new electric arc furnace promises to cut emissions and safeguard jobs, its business model depends on stable export markets.
At Trostre, where tinplate production is closely tied to EU demand, the risk is immediate. Any loss of access could ripple through supply chains, from Llanelli to the food and beverage giants who rely on Welsh steel.
With unions demanding urgent action and both Welsh and UK governments scrambling for answers, the future of steel in South West Wales once again hangs on political negotiations in Brussels and London.
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