GWENT steelworkers whose jobs could be threatened by US import sanctions today learned that Europe was retaliating.

The European Union announced this morning that it was imposing tariffs on imported steel to stop cheap products being 'dumped' on the Continent as a result of America's action.

Many steelmakers, including Corus, believe that President Bush's attempt last month to protect the US steel industry by making imports expensive there will result in a devastating glut in Europe.

The EU action is a result of lobbying from European steelmakers and the British government. Prime Minister Tony Blair said everything would be done to support plants such as Llanwern, pictured.

Writing exclusively for the Argus in March, he said: "We are not going to stand by and see this plant and its workforce damaged by unfair action from a country whose own steel firms have ducked the tough decisions needed to make them competitive."

Today's action signals a possible trade 'war' between Europe and America.