🔗 Share this article

EU officials declared they will mirror Donald Trump's steel tariffs, effectively doubling taxes on imports to fifty percent in a move described as "a survival risk" to the sector in the UK.

Major Challenge for British Steel Industry

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

European Commission Measures and Regulations

Through its proposal presented to the EU legislature on Tuesday, the EU executive also proposed slashing the existing quota for duty-free imports and requiring international producers to declare where the steel was melted and poured to stop China sneaking products in through third nations.

EU steel sector was on the verge of collapse – these measures safeguard it so that it can invest, reduce emissions, and regain competitiveness.

Overhaul of Current Framework

These measures are intended to supersede a quota system that has been in operation for the past seven years and which is set to expire in 2026 and is now seen as ineffective. To do nothing could have been "fatal" for the sector, one EU official said.

Industry Reaction and Warnings

Nevertheless, industry representatives, from the industry body UK Steel, said Brussels increasing duties would pose "the biggest crisis the UK steel industry has ever faced".

He called on the UK authorities to "acknowledge the critical necessity to implement domestic protections to protect" the British steel sector – which is affected by a 25% tariff from the US earlier this year – from the threat of millions of tonnes of world steel redirected from American and EU markets.

This flood of imports "might prove terminal for numerous steel companies.

Labor and Government Calls

Alasdair McDiarmid, assistant general secretary at steelworkers' union Community, stated the proposed changes represented "an existential threat" to British steel production.

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

Industry Background

Industry leaders in the EU have also been warning for months that their own industry faces being "wiped out" through the new 50% tariffs on American market shipments along with rising energy prices and cheap Chinese competition.

Steel on both sides of the Channel is described as a foundational industry, providing elemental components in everything from skyscraper structures, wind turbines and transport infrastructure to household appliances and cutlery.

Implementation and Next Steps

The new measures require approval by EU nations and the European parliament, with the European Commission president urging member states and European parliament members to act fast in backing the initiative.

If the plan is ratified, the EU will cut its existing tariff-free allowance by forty-seven percent to 18.3m tonnes a annually, a volume previously recorded in 2013. It will impose a fifty percent duty on foreign steel exceeding the limit and oblige countries shipping to the EU to declare the production origin to prevent circumvention of the sanctions.

Exceptions and International Cooperation

Norway, Iceland, and Liechtenstein will not be subject to tariff quotas or duties because of their strong economic ties in the EEA, the EU has said.

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

EU needs to act now, and firmly, before operations cease in significant portions of the European steel sector and its supply networks.