EU's Proposal to Align With Trump's Steel Tariffs Spurs 'Survival Risk' to British Steel Sector

EU officials revealed they will adopt the United States' import duties on steel, increasing to double taxes on imports to 50% in a move described as "a critical danger" to the industry in the UK.

Major Challenge for British Steel Exports

With eighty percent of UK steel shipments destined for the European Union, this change poses the UK steel industry's largest crisis, according to the industry association speaking for the sector.

European Commission Measures and Rules

In its plan submitted to the EU legislature on Tuesday, the EU executive also proposed cutting the existing quota for duty-free imports and obliging international producers 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 – these measures safeguard it so that it can invest, reduce emissions, and become competitive again.

Overhaul of Current Framework

These measures are designed to replace a import framework that has been in operation for the last seven years and which is due to expire in 2026 and is now considered ineffective. Inaction could have been "disastrous" for the industry, a European official stated.

Sector Reaction and Concerns

Nevertheless, Gareth Stace, from the industry body UK Steel, stated EU increasing duties would pose "the most severe challenge the UK steel industry has ever faced".

There were calls for the government to "recognise the urgent need to put in place domestic protections to protect" the British steel sector – which is still reeling from a 25% duty imposed by Trump earlier this year – from the risk of vast quantities of world steel redirected from US and European markets.

This flood of imports "might prove terminal for many of our remaining steel companies.

Union and Government Calls

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

Unions and industry leaders urged Keir Starmer to start negotiations urgently with the European Union on country-specific duty-free quotas, pointing out that the United Kingdom was now the European Union's No 1 trading partner.

Industry Background

Industry leaders in the EU have repeatedly cautioned for months that their own industry faces being "eliminated" through the new 50% tariffs on American market shipments combined with high energy costs and low-cost Chinese imports.

The steel industry on in both the UK and EU is described as a foundational industry, supplying elemental components in everything from building frameworks, wind turbines and transport infrastructure to household appliances and cutlery.

Implementation and Next Steps

These proposals require approval by EU nations and the European parliament, with the European Commission president calling on national governments and European parliament members to act fast in backing the initiative.

Should approval be granted, the EU will reduce its existing tariff-free allowance by 47% to 18.3m tonnes a year, a volume last seen in 2013. It will impose a fifty percent tariff on imports exceeding the limit and oblige countries exporting into the EU to declare the production origin to avoid bypassing of the sanctions.

Exemptions and International Cooperation

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

Alongside the proposal, the EU is seeking a "steel partnership" with the United States to protect their respective economies from overcapacity.

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