Speedy response needed to EU steel tariffs, says Tata

The UK government needs to move at "pace" to protect the Welsh and UK steel industry after the EU announced plans to hike tariffs, Tata Steel has told Senedd members.

Tata Steel UK chief executive Rajesh Nair warned "the trade situation is becoming more and more difficult and things are moving pretty fast".

But he said he was "reasonably confident", based on discussions with government, that ministers would respond in the way needed.

Prime Minister Sir Keir Starmer promised "strong support" for the industry, after the European Commission set out proposals to cut steel imports into the EU by half. Beyond that new 50% tariffs will apply.

Mr Nair also assured the committee he has "great confidence" Tata's new, greener electric arc steel plant in Port Talbot will be ready by the end of 2027.

"But the next few months when we start construction on the ground, that will be the test, I think, of how well we can get the job done on the ground," he said.

The EU is the UK's most important overseas market for steel, representing 78% of exports.

The European Commission is under pressure from some member states struggling to compete with cheap imports from countries such as China and Turkey.

It proposes reducing tariff-free quotas for imports by 47% from 2024 levels.

The new measures are due to come into force early next year, but first need approval by the majority of EU member states and the European Parliament.

Mr Nair told Thursday's session of the Welsh Parliament's Economy, Trade, and Rural Affairs Committee: "The trade situation is becoming more and more difficult and things are moving pretty fast.

"So one of the expectations is we need to bring pace into it.

"But I'm reasonably confident, with the discussions that we're having, that the government will also look to do things very similar to what the EU has done."

This meant, he said, "on the one hand" protecting the domestic steel market, but also working with the EU to secure some preferential treatment and concessions.

This was to "make sure that we have the right trading interests between the two blocs, because EU also is a significant exporter into the UK", he said.

"So it's in our interests to find the right place for EU and UK to do business, especially in steel."

Tata Steel UK chief executive Rajesh Nair took questions from a Senedd committee on Thursday

In a full Senedd session on Wednesday afternoon, Wales' economy and energy secretary said the Welsh government was "pressing strongly" for UK ministers to have "urgent discussions" with the European Commission on tariffs.

Rebecca Evans said UK talks with Brussels were needed to "ensure that Wales and Welsh steel does not get left behind in any future steel trading arrangements with the EU".

She was responding to a question from Plaid Cymru economy spokesperson Luke Fletcher.

He asked her what steps the Welsh government was taking to "ensure that Welsh plants like Port Talbot and Llanwern are not left to bear the brunt of this tariff war between Brussels and Washington, because our steel communities can't take much more and there's already a track record from the UK Labour government of safeguarding steel plants in England".

Evans replied: "I do want to reassure colleagues that we are in very close contact with the UK government on this particular issue and they are very, very aware of the situation and how important it is for Wales."

Speaking on his way to India on Tuesday, Sir Keir Starmer said there would be "strong support" from the government for the British steel industry.

"I'll be able to tell you more in due course, but we are in discussions as you'd expect", the prime minster said.