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The European Union revealed plans to mirror Donald Trump's import duties on steel, effectively doubling taxes on foreign steel to fifty percent in a move condemned as "a survival risk" to the industry in the UK.

Major Challenge for British Steel Industry

Given that eighty percent of British exports going to the European Union, this policy shift represents the British steel sector's largest challenge, according to the lobby group speaking for the industry.

European Commission Proposals and Regulations

Through its proposal presented to the European parliament this week, the European Commission also proposed slashing the existing quota for tariff-exempt steel and obliging foreign suppliers to state the origin of steel production to stop China sneaking products in through third nations.

EU steel sector faced potential collapse – we are protecting it so that it can invest, reduce emissions, and become competitive again.

Overhaul of Existing System

The proposals are designed to replace a quota system that has been functioning for the last seven years and which is set to expire in 2026 and is now seen as outdated. To do nothing could have been "fatal" for the industry, one EU official stated.

Sector Reaction and Concerns

However, industry representatives, from the industry body UK Steel, stated EU doubling its tariffs would pose "the biggest crisis the UK steel industry has encountered".

There were calls for the government to "recognise the urgent need to implement its own measures to defend" the UK steel industry – which is affected by a twenty-five percent tariff from the US recently – from the risk of vast quantities of world steel diverted away from US and European markets.

This surge in foreign steel "could be fatal for many of our remaining steel companies.

Labor and Government Pressure

Union leaders, representative at labor union the industry union, stated the proposed changes posed "an existential threat" to UK steel.

Labor and business representatives called on the UK government to begin talks immediately with the European Union on country-specific duty-free quotas, noting that the UK was now the EU's No 1 trading partner.

Industry Background

Sector representatives in the EU have repeatedly cautioned for several months that their own industry faces being "eliminated" through the new 50% tariffs on American market shipments combined with rising energy prices and low-cost Chinese imports.

The steel industry on both sides of the Channel is described as a foundational industry, supplying elemental components in products ranging from building frameworks, renewable energy equipment and railways to household appliances and kitchenware.

Adoption and Next Steps

The new measures must be agreed by member states and the European parliament, with the European Commission president calling on member states and European parliament members to act fast in backing the proposal.

Should approval be granted, the EU will cut its current duty-free quota by 47% to 18.3m tonnes a year, a volume previously recorded in 2013. It will apply a fifty percent duty on foreign steel exceeding the limit and require countries exporting into the EU to state where the steel was melted and poured to avoid bypassing of the sanctions.

Exemptions and Global Partnerships

Norway, Iceland, and Liechtenstein will not be subject to import limits or duties due to their strong economic ties in the EEA, the EU has confirmed.

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

The European Union needs to act now, and decisively, before operations cease in large parts of the EU steel industry and its value chains.