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EU officials have announced they will mirror Donald Trump's import duties on steel, increasing to double levies on foreign steel to 50% in a action described as "a critical danger" to the sector in Britain.

Unprecedented Crisis for UK Steel Industry

With 80% of UK steel shipments destined for the European Union, this change creates the UK steel industry's largest challenge, as stated by the industry association speaking for the industry.

European Commission Proposals and Regulations

In its plan submitted to the EU legislature this week, the EU executive additionally suggested cutting the current allowance for tariff-exempt steel and obliging foreign suppliers to declare the origin of steel production to stop China sneaking products in through other countries.

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

Replacement of Existing System

These measures are designed to supersede a import framework that has been in operation for the past seven years and which is due to expire in 2026 and is now seen as not fit for purpose. Inaction could have been "fatal" for the industry, a European official stated.

Sector Reaction and Warnings

However, Gareth Stace, head of the trade association UK Steel, stated Brussels doubling its tariffs would create "the most severe challenge the UK steel industry has ever faced".

He called on the government to "acknowledge the critical necessity to put in place domestic protections to defend" the UK steel industry – which is still reeling from a twenty-five percent duty imposed by the US recently – from the risk of millions of tonnes of world steel diverted away from American and EU markets.

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

Union and Political Calls

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

Unions and industry leaders urged Keir Starmer to start negotiations urgently with the EU on country-specific duty-free quotas, noting that the United Kingdom was now the EU's primary export market.

Broader Context

Industry leaders in the European Union have also been warning for months that the European steel sector confronts being "eliminated" through the increased duties on exports to the US along with high energy costs and cheap Chinese competition.

The steel industry on in both the UK and EU is described as a essential sector, providing elemental components in everything from skyscraper structures, renewable energy equipment and railways to dishwashers and kitchenware.

Adoption and Next Steps

These proposals require approval by member states and the European parliament, with the EU executive head calling on member states and European parliament members to act fast in support of the initiative.

Should approval be granted, the European Union will cut its existing tariff-free allowance by 47% to 18.3m tonnes a annually, a level previously recorded in 2013. It will apply a 50% duty on foreign steel exceeding the limit and require countries exporting into the bloc to declare the production origin to prevent circumvention of the sanctions.

Exceptions and International Cooperation

These European nations will not be subject to import limits or tariffs due to their close trading relationship in the European Economic Area, the European Union has confirmed.

In addition to these measures, the EU is pursuing a "steel partnership" with the United States to protect their national industries from overcapacity.

EU must take immediate action, and firmly, prior to operations cease in significant portions of the European steel sector and its value chains.