British Steel is at present fighting for its life against this tidal wave of Chinese steel imports. This circumstance has arisen as a result of the U.S. shuttering high import tariffs. These tariffs have motivated Chinese companies to relocate their supplies over to Europe. As a consequence, a market glut has been created, harming numerous industries in the process, such as chemicals and textiles.
These U.S. tariffs have grave impacts beyond just the domestic steel industry. Our own British and wider European manufacturers are experiencing the severe knock-on effects. The deluge of ‘dirt-cheap’ Chinese exports is intensifying the race to the bottom. Consequently, local producers are having an increasingly difficult time maintaining their footing in the market. British Steel is currently functioning in very difficult circumstances. It fights the good fight against foreign imports and brutal local market conditions.
In response to this crisis, Ineos, a major player in the chemicals sector, has announced plans to close several factories. This decision demonstrates just how devastating the market glut’s effects have been on the chemical industry. The industry was already reeling under redirected supplies coming back from China. As the market struggles, both chemical and textile sectors are calling for urgent action to address the challenges stemming from this trade imbalance.
European leaders are finally starting to wake up to the need for strong protective action for their steel industries. And they’re looking for ways to shield their homegrown manufacturers from the flood of cheaper imports. At the same time, they are clearly trying to address the broader impacts of expensive U.S. tariffs on U.S. global supply chains. The European steel industry is under immense pressure. Manufacturers continue to call on policymakers to do more and do better, to help mitigate the damage of these self-inflicted trade tensions.
The case has sparked enormous business concern on both sides of the pond. They are understandably more concerned about the ways U.S. trade policies might cascade through global markets. Chinese firms are beginning to set their sights on Europe. At the same time, local industries are barely managing to adapt to the competitive challenges posed by these diverted supplies.