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EU officials have announced plans to match the United States' import duties on steel, increasing to double taxes on foreign steel to fifty percent in a action condemned as "a survival risk" to the industry in the UK.

Unprecedented Crisis for British Steel Exports

With 80% of UK steel shipments destined for the European Union, this policy shift represents the UK steel industry's most severe crisis, according to the industry association representing the sector.

European Commission Proposals and Rules

Through its proposal submitted to the European parliament on Tuesday, the EU executive additionally suggested reducing the current allowance for tariff-exempt steel and requiring international producers to declare where the steel was melted and poured to stop Chinese producers sneaking products in through third nations.

The European steel industry was on the verge of collapse – these measures safeguard it so that it can invest, decarbonise, and become competitive again.

Replacement of Existing System

The proposals are intended to replace a import framework that has been functioning for the last seven years and which is due to expire in 2026 and is now seen as outdated. Inaction could have been "fatal" for the industry, one EU official stated.

Sector Response and Concerns

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

There were calls for the government to "recognise the critical necessity to put in place domestic protections to protect" the UK steel industry – which is still reeling from a twenty-five percent tariff from Trump recently – from the risk of millions of tonnes of world steel redirected from American and EU markets.

This surge in foreign steel "could be fatal for many of our remaining steel companies.

Union and Political Calls

Union leaders, representative at steelworkers' union the industry union, stated the proposed changes posed "a survival risk" to UK steel.

Labor and business representatives urged the UK government to start negotiations immediately with the EU on country-specific duty-free quotas, noting that the UK was now the European Union's No 1 export market.

Industry Background

Industry leaders in the EU have repeatedly cautioned for months that the European steel sector confronts being "eliminated" through the new 50% tariffs on exports to the US along with high energy costs and cheap Chinese competition.

Steel on in both the UK and EU is considered a foundational industry, providing elemental components in products ranging from skyscraper structures, wind turbines and railways to household appliances and cutlery.

Implementation and Next Steps

The new measures must be agreed by member states and the European parliament, with the EU executive head calling on national governments and MEPs to move quickly in backing the proposal.

If the plan is ratified, the EU will reduce its existing tariff-free allowance by 47% to 18.3 million tons a annually, a level previously recorded in 2013. It will apply a 50% duty on imports beyond the quota and require countries shipping to the EU to declare the production origin to avoid bypassing of the measures.

Exceptions and Global Partnerships

Norway, Iceland, and Liechtenstein will be exempt from tariff quotas or duties because of their strong economic ties in the European Economic Area, the EU has confirmed.

Alongside the proposal, the European Union is seeking a "metals alliance" with the United States to ringfence their national industries from excess production.

EU needs to act now, and firmly, before all lights go out in large parts of the EU steel industry and its supply networks.