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EU officials declared plans to mirror Donald Trump's steel tariffs, effectively doubling taxes on imports to 50% in a action described as "an existential threat" to the sector in the UK.

Unprecedented Crisis for UK Steel Industry

With 80% of UK steel shipments destined for the European Union, this policy shift creates the British steel sector's largest crisis, as stated by the industry association speaking for the sector.

New EU Measures and Regulations

In its plan presented to the EU legislature this week, the EU executive also proposed cutting the existing quota for duty-free imports and requiring foreign suppliers to declare where the steel was melted and poured to prevent China sneaking products in through other countries.

The European steel industry was on the verge of collapse – these measures safeguard it so that investments can be made, reduce emissions, and become competitive again.

Overhaul of Existing System

These measures are intended to supersede a import framework that has been in operation for the past seven years and which is set to expire in 2026 and is now seen as outdated. To do nothing could have been "catastrophic" for the industry, a European official said.

Industry Reaction and Concerns

Nevertheless, Gareth Stace, head of the industry body British Steel, said EU increasing duties would create "the biggest crisis the UK steel industry has encountered".

He called on the UK authorities to "recognise the critical necessity to put in place domestic protections to defend" the British steel sector – which is still reeling from a 25% tariff from Trump recently – from the risk of vast quantities of global steel diverted away from American and EU markets.

This flood of imports "could be fatal for numerous steel companies.

Labor and Political Pressure

Alasdair McDiarmid, representative at steelworkers' union Community, stated the new measures represented "an existential threat" to UK steel.

Labor and business representatives called on the UK government to start negotiations urgently with the European Union on nation-specific duty-free quotas, noting that the United Kingdom was now the European Union's primary trading partner.

Broader Context

Industry leaders in the EU have also been warning for months that their own industry faces being "eliminated" through the increased duties on exports to the US along with high energy costs and low-cost Chinese imports.

The steel industry on both sides of the Channel is considered a essential sector, providing elemental components in products ranging from skyscraper structures, wind turbines and railways to dishwashers and kitchenware.

Adoption and Future Actions

The new measures must be agreed by EU nations and the European parliament, with the European Commission president urging member states and MEPs to act fast in backing the initiative.

Should approval be granted, the EU will cut its current duty-free quota by 47% to 18.3m tonnes a year, a level previously recorded in 2013. It will impose a fifty percent tariff on foreign steel exceeding the limit and oblige countries shipping to the EU to declare where the steel was melted and poured to avoid bypassing of the measures.

Exceptions and International Cooperation

These European nations will be exempt from tariff quotas or tariffs because of their close trading relationship in the EEA, the European Union has said.

Alongside the proposal, the European Union is pursuing a "metals alliance" with the US to protect their respective economies from overcapacity.

EU must take immediate action, and decisively, prior to operations cease in large parts of the EU steel industry and its supply networks.