Brussels: The UK is gearing up to confront the European Union over its proposed plans to significantly reduce tariff-free steel imports, a move that has stirred concerns among British steel producers. Business Secretary Peter Kyle is anticipated to address this contentious issue in discussions with EU Trade Commissioner Maros Sefcovic in Brussels on Friday.

According to Anadolu Agency, the dispute arises from the EU's intention to amend its steel safeguard regime, which aims to slash the tariff-free import quotas for non-EU countries starting July 1. This proposal has alarmed the UK's steel industry, which warns that the changes could have "devastating" effects on its sector by limiting access to crucial export markets in the EU.

The proposed changes would result in a 47% reduction in overall tariff-free steel imports into the EU from non-member countries, compared to 2024 levels. This has sparked worries among industry leaders on both sides of the Channel, who fear that the disagreement could lead to retaliatory trade measures from Britain.

The emerging conflict poses a new challenge to UK-EU trade relations, which both parties have been striving to improve following recent agreements designed to mend ties post-Brexit. The British steel industry, heavily reliant on exports to the EU, has called on the government to negotiate exemptions or alternative solutions to prevent additional costs and trade barriers.

The upcoming discussions between Kyle and Sefcovic will likely focus on evaluating the potential repercussions of the proposed quota reductions and exploring possibilities for adjustment before the new rules come into force next month.