🔗 Share this article

EU officials declared plans to match Donald Trump's steel tariffs, increasing to double taxes on imports to fifty percent in a move condemned as "an existential threat" to the industry in Britain.

Unprecedented Crisis for UK Steel Industry

With eighty percent of British exports going to the European Union, this policy shift poses the UK steel industry's largest challenge, according to the industry association speaking for the industry.

European Commission Proposals and Rules

Through its proposal presented to the European parliament this week, the European Commission additionally suggested cutting the current allowance for tariff-exempt steel and obliging foreign suppliers to disclose the origin of steel production to stop China diverting exports through third nations.

EU steel sector faced potential collapse – these measures safeguard it so that investments can be made, decarbonise, and become competitive again.

Replacement of Current Framework

The proposals are intended to replace a quota system that has been functioning for the past seven years and which is set to expire in 2026 and is now considered outdated. To do nothing could have been "disastrous" for the sector, one EU official stated.

Industry Response and Warnings

Nevertheless, Gareth Stace, head of the trade association British Steel, said Brussels increasing duties would pose "the most severe challenge the British steel sector has ever faced".

There were calls for the UK authorities to "acknowledge the urgent need to implement its own measures to defend" the UK steel industry – which is still reeling from a twenty-five percent tariff from Trump earlier this year – from the risk of millions of tonnes of global steel diverted away from American and EU markets.

This flood of imports "could be fatal for many of our remaining steel companies.

Labor and Government Pressure

Union leaders, assistant general secretary at labor union Community, stated the new measures posed "an existential threat" to British steel production.

Labor and business representatives urged Keir Starmer to start negotiations urgently with the European Union on country-specific tariff exemptions, noting that the UK was now the European Union's primary trading partner.

Industry Background

Industry leaders in the EU have repeatedly cautioned for several months that their own industry faces being "eliminated" through the increased duties on exports to the US combined with rising energy prices and low-cost Chinese imports.

Steel on both sides of the Channel is considered a essential sector, supplying basic materials in everything from skyscraper structures, renewable energy equipment and transport infrastructure to household appliances and cutlery.

Implementation and Future Actions

The new measures must be agreed by member states and the European parliament, with the EU executive head urging member states and MEPs to move quickly in backing the initiative.

If the plan is ratified, the EU will reduce its existing tariff-free allowance by 47% to 18.3m tonnes a annually, a volume previously recorded in 2013. It will impose a 50% duty on foreign steel exceeding the limit and oblige countries exporting into the bloc to state where the steel was melted and poured to prevent circumvention of the sanctions.

Exceptions and International Cooperation

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

Alongside the proposal, the European Union is pursuing a "metals alliance" with the United States to protect their respective economies from excess production.

The European Union must take immediate action, and decisively, prior to operations cease in large parts of the European steel sector and its supply networks.