UK-EU promote 'steel alliance' to deal with steel overcapacity from China

Photo caption — Steel coils at the ThyssenKrupp factory in Duisburg, western Germany. Illustration photo: AFP/TTXVN

According to Politico on October 27, this initiative could be expanded with the participation of the US, aiming to coordinate tariff policies, create a preferential trade framework between Western countries and protect the steel industry from competition from China.

The EU is preparing to impose tariffs of up to 50% on steel imports from China, in a bid to protect domestic producers from Beijing's overproduction, which has caused global steel prices to plummet. However, the move could have a significant impact on the UK, which exports half of its steel to Europe.

After Brexit, the UK will no longer be part of the EU's common trading system and will be directly affected by new tariffs. Many UK businesses are concerned that the tariffs will increase costs, reduce competitiveness and may force them to reduce production.

Facing the threat of new tariffs, London is looking for 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 industry”, but still leaves open the possibility of dialogue with the UK to find a “reasonable and mutually beneficial” solution.

The idea of forming a “Western steel club” has been discussed for years, but is now more feasible amid fierce competition with China, according to diplomatic sources. The alliance is expected to coordinate tax policies, share trade data, and apply preferential tariff regimes among members.

The UK and EU have already joined forces in the Global Forum on Steel Excess Capacity and agreed on a carbon tax adjustment (CBAM) for steel and other high-emission products. In the US, Trade Representative Jamieson Greer also called for closer coordination among Western economies to tackle Chinese subsidies and dumping, stressing the need for “strong political will” from partners.

British Steel Association chief executive Gareth Stace said the government should prioritise negotiations with the EU to secure trade exemptions while strengthening domestic defences. He stressed that a united alliance could help “root out global steel overcapacity” and prevent cheap steel from flooding the UK-EU market.

A UK Government spokesman confirmed that London is working with Brussels and international partners to find “a common way forward, ensuring 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 trade bloc – to counter 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-luat-thep-tu-trung-quoc-20251027122033330.htm