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EU officials revealed plans to match Donald Trump's import duties on steel, effectively doubling levies on foreign steel to fifty percent in a move described as "a survival risk" to the sector in Britain.

Unprecedented Crisis for British Steel Industry

With eighty percent of UK steel shipments going to the European Union, this policy shift poses the British steel sector's biggest ever crisis, according to the industry association speaking for the sector.

New EU Measures and Rules

Through its proposal presented to the EU legislature this week, the European Commission also proposed cutting the current allowance for duty-free imports and obliging international producers to state where the steel was melted and poured to prevent Chinese producers diverting exports through other countries.

EU steel sector was on the verge of collapse – we are protecting it so that it can invest, reduce emissions, and regain competitiveness.

Overhaul of Existing System

The proposals are intended to supersede a quota system that has been functioning for the past seven years and which is set to expire in 2026 and is now seen as outdated.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 "disastrous" for the industry, a European official said.

Sector Response and Warnings

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

He called on the UK authorities to "acknowledge the urgent need to implement its own measures to defend" the British steel sector – which is still reeling from a 25% tariff imposed by Trump recently – from the threat of millions of tonnes of world steel diverted away from US and European markets.

This surge in foreign steel "might prove fatal for numerous steel companies.

Labor and Political Calls

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

Unions and industry leaders urged the UK government to begin talks immediately with the European Union on nation-specific tariff exemptions, pointing out that the UK was now the European Union's No 1 trading partner.

Industry Background

Industry leaders in the European Union have also been warning for several months that the European steel sector faces being "eliminated" through the new 50% tariffs on American market shipments along with high energy costs and cheap Chinese competition.

Steel on both sides of the Channel is described as a foundational industry, supplying basic materials in everything from building frameworks, wind turbines and railways to dishwashers and cutlery.

Adoption and Next Steps

The new measures require approval by EU nations and the European parliament, with the European Commission president urging national governments and MEPs to move quickly in backing the initiative.

Should approval be granted, the EU will cut its current duty-free quota by forty-seven percent to 18.3m tonnes a year, a level last seen in 2013. It will apply a 50% duty on imports beyond the quota and oblige countries exporting into the bloc to declare the production origin to avoid bypassing of the sanctions.

Exemptions and International Cooperation

Norway, Iceland, and Liechtenstein will be exempt from import limits or tariffs due to 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 must take immediate action, and firmly, before operations cease in large parts of the EU steel industry and its supply networks.