EU's Plan to Align With Trump's Steel Tariffs Poses 'Existential Threat' to British Steel Sector

EU officials revealed they will mirror Donald Trump's steel tariffs, increasing to double levies on imports to fifty percent in a decision described as "a critical danger" to the sector in Britain.

Major Challenge for UK Steel Exports

With 80% of UK steel shipments destined for the EU, this change represents the UK steel industry's biggest ever crisis, as stated by the industry association representing the industry.

New EU Proposals and Regulations

In its plan presented to the European parliament on Tuesday, the European Commission also proposed cutting the existing quota for tariff-exempt steel and requiring foreign suppliers to disclose the origin of steel production to prevent China sneaking products in through other countries.

EU steel sector faced potential collapse – we are protecting it so that investments can be made, reduce emissions, and become competitive again.

Replacement of Existing System

The proposals are intended to supersede a import framework that has been functioning for the last seven years and which is due to expire in 2026 and is now considered ineffective. Inaction could have been "catastrophic" for the sector, one EU official said.

Sector Reaction and Warnings

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

There were calls for the UK authorities to "recognise the critical necessity to put in place its own measures to defend" the British steel sector – which is still reeling from a 25% duty imposed by the US recently – from the risk of millions of tonnes of world steel diverted away from American and EU markets.

This flood of imports "could be terminal for numerous steel companies.

Labor and Government Calls

Alasdair McDiarmid, assistant general secretary at labor union the industry union, said the new measures posed "an existential threat" to UK steel.

Unions and industry leaders urged Keir Starmer to begin talks immediately with the EU on nation-specific duty-free quotas, noting that the United Kingdom was now the EU's No 1 trading partner.

Industry Background

Industry leaders in the EU have repeatedly cautioned for months that their own industry confronts being "eliminated" through the increased duties 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 products ranging from skyscraper structures, wind turbines and transport infrastructure to dishwashers and kitchenware.

Adoption and Next Steps

These proposals must be agreed by member states and the EU legislature, with the EU executive head calling on national governments and MEPs to move quickly in backing the initiative.

Should approval be granted, the European Union will cut its existing tariff-free allowance by forty-seven percent to 18.3m tonnes a year, a level last seen in 2013. It will impose a 50% tariff on imports beyond the quota and require nations exporting into the EU to state where the steel was melted and poured to avoid bypassing of the sanctions.

Exemptions and Global Partnerships

Norway, Iceland, and Liechtenstein will be exempt from import limits or duties because of their strong economic ties in the European Economic Area, the European Union has said.

In addition to these measures, the EU is seeking a "metals alliance" with the US to ringfence their respective economies from overcapacity.

The European Union must take immediate action, and decisively, prior to operations cease in large parts of the European steel sector and its supply networks.