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EU officials have announced plans to mirror the United States' steel tariffs, increasing to double taxes on imports to 50% in a action described as "an existential threat" to the sector in Britain.

Major Challenge for UK Steel Industry

With 80% of UK steel shipments destined for the EU, this policy shift represents the UK steel industry's biggest ever crisis, according to the industry association speaking for the industry.

New EU Measures and Rules

In its plan submitted to the European parliament this week, the European Commission also proposed reducing the current allowance for duty-free imports and requiring international producers to state the origin of steel production to prevent China sneaking products in through third nations.

EU steel sector faced potential collapse – we are protecting it so that investments can be made, decarbonise, and regain competitiveness.

Overhaul of Existing System

These measures 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 considered not fit for purpose. Inaction could have been "fatal" for the industry, one EU official said.

Industry Reaction and Concerns

However, industry representatives, from the trade association British Steel, stated Brussels increasing duties would create "the most severe challenge the British steel sector has encountered".

He called on the UK authorities to "recognise the critical necessity to implement its own measures to protect" the British steel sector – which is affected by a twenty-five percent duty from Trump recently – from the threat of millions of tonnes of world steel diverted away from American and EU markets.

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

Labor and Political Calls

Union leaders, representative at steelworkers' union the industry union, said the new measures posed "a survival risk" to British steel production.

Unions and industry leaders called on Keir Starmer to start negotiations urgently with the EU on nation-specific duty-free quotas, pointing out that the UK was now the EU's primary export market.

Industry Background

Sector representatives in the European Union have also been warning for several months that their own industry confronts being "wiped out" through the new 50% tariffs on American market shipments along with rising energy prices and cheap Chinese competition.

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

Implementation and Next Steps

These proposals require approval by member states and the EU legislature, with the European Commission president urging member states and European parliament members to act fast in backing the proposal.

If the plan is ratified, the EU will reduce its current duty-free quota by forty-seven percent to 18.3 million tons a year, a level previously recorded in 2013. It will impose a 50% tariff on imports exceeding the limit and oblige nations exporting into the bloc to declare the production origin to avoid bypassing of the sanctions.

Exceptions and International Cooperation

These European nations will be exempt from tariff quotas or tariffs due to their strong economic ties in the EEA, the European Union has said.

Alongside the proposal, the European Union is pursuing a "steel partnership" with the US to protect their respective economies from excess production.

The European Union needs to act now, and decisively, prior to all lights go out in significant portions of the European steel sector and its value chains.