EU threatens Britain with ‘devastating’ tariffs

The European Union is threatening Britain’s metal business with “existential” tariffs of as much as 50pc simply months after Sir Keir Starmer promised a reset of relations with Brussels.

On Tuesday, Brussels was making ready to impose swingeing taxes on all imports coming into the bloc, amid fears {that a} flood of low cost metal from Asia is crushing home industries.

Nevertheless, British metal producers have warned they will even be hit by the crackdown, dealing a blow that dangers being deadly for a lot of firms.

It is because some 78pc of all Britain’s metal exports at present go to the EU – or round 1.9 million tonnes.

The dispute will likely be seen as a humiliation for Starmer, who made main concessions on fishing and youth migration in Could in his bid to enhance post-Brexit relations with Brussels.

It may additionally deal one other blow to the Prime Minister’s push to revitalise British business, after the nation’s metal and automobile makers have been hammered by Donald Trump’s commerce tariffs.

Brussels’ metal tariffs have the potential to deal way more injury than President Trump’s, with commerce physique UK Metal saying they might unleash “the largest disaster the business has ever confronted” and danger being “terminal” for a lot of firms.

In distinction to these despatched to the EU, simply 7pc of Britain’s metal exports are despatched to the US.

The EU’s new “safeguarding measures” would impose tariffs of as much as 50pc on varied metal merchandise imported from exterior the bloc, as soon as they exceed a quota set at 2013 ranges, the Monetary Instances reported.

On the identical time, British companies concern the prohibitively excessive tariffs will immediate overseas exporters to divert extra of their metal to the UK – additional undermining home business.

Towards this backdrop, Whitehall officers are scrambling to safe carve-outs for British firms.

Metal firms are additionally lobbying the Authorities to impose its personal harder restrictions on overseas imports from exterior the EU.

Peter Brennan, of UK Metal, warned the plans would ship a probably “devastating hit” to producers.

He stated: “These tariffs can be a large downside for British metal firms at a time when they’re already beneath loads of stress.

“If we can’t get our personal quotas for what the EU is doing and can’t proceed to export in comparable volumes, it turns into an existential downside for the business.”

Britain’s exports to the bloc ought to, in idea, be tariff-free beneath the post-Brexit free commerce settlement.

Nevertheless, Mr Brennan stated that the deal allowed either side to maintain sure “safeguards” in place.

These quotas are imposed on how a lot of sure merchandise might be imported from varied nations earlier than greater tariffs kick in. The system is extremely sophisticated, and totally different quotas are imposed for every product and nation individually.

The EU’s new tariffs are designed to sort out the flood of low cost metal popping out of Asia, and notably China, which frequently advantages from subsidies.

1 / 4 of the EU’s metal demand is at present met by exports, in comparison with round 70pc within the UK.

The bloc’s tariffs will deal yet one more blow to the UK metal business, which is already combating excessive electrical energy costs and better US tariffs.

Native metal producers have been grappling with tariffs of 25pc since President Trump raised them earlier this yr.

Sir Keir has trumpeted this as decrease than the 50pc taxes imposed on many different nations, however the Prime Minister has to date did not hold his pledge to barter zero-rate tariffs.

The Authorities stated it continued to “work carefully with EU companions as we await the complete particulars of those plans and their impression on UK companies”.

Brussels is predicted to unveil particulars of its proposals on Tuesday afternoon.