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The European Union declared plans to adopt Donald Trump's steel tariffs, increasing to double taxes on imports to fifty percent in a move described as "a survival risk" to the industry in the UK.

Major Challenge for British Steel Exports

With eighty percent of UK steel shipments going to the European Union, this change poses the UK steel industry's biggest ever crisis, according to the industry association representing the industry.

European Commission Proposals and Rules

Through its proposal submitted to the European parliament this week, the EU executive additionally suggested reducing the current allowance for tariff-exempt steel and obliging foreign suppliers to disclose where the steel was melted and poured to prevent Chinese producers sneaking products in through third nations.

The European steel industry was on the verge of collapse – these measures safeguard it so that investments can be made, decarbonise, and regain competitiveness.

Replacement of Existing System

These measures 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 seen as not fit for purpose. To do nothing could have been "fatal" for the sector, a European official said.

Sector Reaction and Concerns

Nevertheless, Gareth Stace, from the trade association UK Steel, said EU increasing duties would create "the biggest crisis the UK steel industry has encountered".

He called on the government to "acknowledge the urgent need to implement domestic protections to defend" the UK steel industry – which is affected by a twenty-five percent duty from the US earlier this year – from the threat of vast quantities of world steel redirected from US and European markets.

This surge in foreign steel "could be terminal for numerous steel companies.

Union and Political Pressure

Alasdair McDiarmid, representative at labor union Community, said the new measures posed "an existential threat" to British steel production.

Labor and business representatives called on the UK government to begin talks immediately with the European Union on nation-specific tariff exemptions, pointing out that the United Kingdom was now the European Union's primary export market.

Broader Context

Sector representatives 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 exports to the US combined with high energy costs and low-cost Chinese imports.

Steel on in both the UK and EU is described as a essential sector, supplying basic materials in products ranging from building frameworks, renewable energy equipment and railways to household appliances and cutlery.

Adoption and Next Steps

These proposals require approval by member states and the European parliament, with the European Commission president calling on national governments and European parliament members to act fast in support of the initiative.

Should approval be granted, the European Union will reduce its current duty-free quota by 47% to 18.3m tonnes a year, a volume last seen in 2013. It will apply a 50% tariff on foreign steel exceeding the limit and require nations shipping to the bloc to declare the production origin to prevent circumvention of the measures.

Exceptions and Global Partnerships

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

In addition to these measures, the European Union is seeking a "steel partnership" with the US to ringfence their national industries from overcapacity.

The European Union must take immediate action, and firmly, before operations cease in significant portions of the EU steel industry and its supply networks.