🔗 Share this article

EU officials revealed they will mirror the United States' import duties on steel, effectively doubling taxes on foreign steel to fifty percent in a action condemned as "a survival risk" to the sector in Britain.

Unprecedented Crisis for UK Steel Industry

Given that eighty percent of British exports destined for the EU, this policy shift represents the UK steel industry's most severe challenge, as stated by the industry association representing the sector.

European Commission Proposals and Regulations

Through its proposal submitted to the European parliament this week, the EU executive also proposed reducing the existing quota for tariff-exempt steel and requiring international producers to declare where the steel was melted and poured to prevent Chinese producers sneaking products in through other countries.

EU steel sector was on the verge of collapse – we are protecting it so that investments can be made, reduce emissions, and become competitive again.

Replacement of Current Framework

The proposals are designed to supersede a quota system that has been in operation for the past seven years and which is due to expire in 2026 and is now considered not fit for purpose. To do nothing could have been "fatal" for the sector, a European official said.

Industry Response and Concerns

However, industry representatives, from the trade association British Steel, said EU increasing duties would pose "the biggest crisis the UK steel industry has ever faced".

He called on the government to "acknowledge the critical necessity to put in place domestic protections to protect" the UK steel industry – which is affected by a 25% tariff imposed by Trump earlier this year – from the threat of millions of tonnes of global steel diverted away from American and EU markets.

This flood of imports "could be fatal for many of our remaining steel companies.

Union and Political Calls

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

Unions and industry leaders urged the UK government to start negotiations immediately with the EU on nation-specific tariff exemptions, noting that the United Kingdom was now the European Union's primary export market.

Broader Context

Industry leaders in the EU have also been warning for months that their own industry confronts being "eliminated" through the new 50% tariffs on exports to the US along with high energy costs and low-cost Chinese imports.

The steel industry on both sides of the Channel is described as a foundational industry, supplying basic materials in everything from building frameworks, renewable energy equipment and railways to household appliances and cutlery.

Implementation and Future Actions

The new measures must be agreed by EU nations and the European parliament, with the EU executive head calling on national governments and MEPs to act fast in support of the initiative.

If the plan is ratified, the European Union will cut its existing tariff-free allowance by forty-seven percent to 18.3 million tons a year, a level previously recorded in 2013. It will apply a fifty percent tariff on foreign steel beyond the quota and require nations shipping to the bloc to state the production origin to prevent circumvention of the measures.

Exemptions and International Cooperation

Norway, Iceland, and Liechtenstein will be exempt from import limits or tariffs due to their close trading relationship in the EEA, the EU has said.

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

The European Union needs to act now, and firmly, before operations cease in large parts of the EU steel industry and its value chains.