According to Politico on October 27, this initiative could be expanded to include the US, aiming to coordinate tariff policies, create a preferential trade framework among Western countries, and protect the steel industry from competition from China.
The EU is currently preparing to impose tariffs of up to 50% on steel imports from China, aiming to protect domestic producers from Beijing's overproduction, which has caused a sharp drop in global steel prices. However, this move could significantly impact the UK, which accounts for half of Europe's steel exports.
Following Brexit, the UK is no longer part of the EU's single trade system and will therefore be directly impacted by new tariff measures. Many British businesses fear that the imposition of tariffs will lead to increased costs, reduced competitiveness, and potentially force them to scale back production.
Facing the risk of being affected by new tariffs, London is seeking exceptions or a special cooperation mechanism with the EU to maintain market access and minimize the risk of trade conflict. An EU official quoted by Politico said the bloc “has no choice but to protect its industries,” but remains open to dialogue with the UK to find a “reasonable and mutually beneficial” solution.
According to diplomatic sources, the idea of forming a “Western steel club” has been discussed for years, but is now becoming more feasible in the context of intense competition with China. This alliance is expected to coordinate tax policies, share trade data, and apply preferential tariff treatment among its members.
The UK and the EU have now collaborated in the Global Forum on Steel Overcapacity and agreed on a carbon tax adjustment (CBAM) for steel and high-emission products. In the US, Trade Representative Jamieson Greer also called for closer coordination among Western economies to address subsidies and dumping from China, emphasizing the need for “strong political will” from partners.
Gareth Stace, CEO of the British Steel Association, believes the government should prioritize negotiations with the EU to secure trade exceptions while strengthening domestic defenses. He stressed that a unified alliance could help “address the root cause of global steel overcapacity” and prevent cheap steel from flooding the UK-EU market.
A UK government spokesperson confirmed that London is working with Brussels and international partners to find "common ground to ensure a fair and sustainable steel market."
If realized, the "Western steel alliance" initiative would not only mark a significant shift in post-Brexit economic relations between the UK and the EU, but could also pave the way for a new Western industrial and trade bloc – aimed at counterbalancing China's growing influence in the global steel sector.
Source: https://baotintuc.vn/thi-truong-tien-te/anheu-thuc-day-lap-lien-minh-thep-doi-pho-tinh-trang-du-thua-cong-suat-thep-tu-trung-quoc-20251027122033330.htm
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