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The European Union have announced they will adopt the United States' import duties on steel, increasing to double levies on imports to 50% in a decision described as "a critical danger" to the industry in Britain.

Unprecedented Crisis for British Steel Exports

With 80% of UK steel shipments destined for the EU, this change creates the British steel sector's biggest ever challenge, as stated by the lobby group representing the sector.

European Commission Proposals and Regulations

Through its proposal submitted to the EU legislature this week, the European Commission additionally suggested cutting the current allowance for tariff-exempt steel and obliging foreign suppliers to state the origin of steel production to stop Chinese producers sneaking products in through other countries.

EU steel sector faced potential collapse – we are protecting it so that investments can be made, decarbonise, and regain competitiveness.

Replacement of Current Framework

These measures are designed to supersede a import framework that has been in operation for the past seven years and which is set to expire in 2026 and is now considered not fit for purpose. Inaction could have been "fatal" for the industry, one EU official said.

Industry Response and Warnings

Nevertheless, industry representatives, head of the industry body UK Steel, said EU increasing duties would pose "the biggest crisis the UK steel industry has ever faced".

There were calls for the UK authorities to "recognise the critical necessity to put in place domestic protections to protect" the British steel sector – which is affected by a 25% duty imposed by Trump 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.

Labor and Political Calls

Alasdair McDiarmid, assistant general secretary at steelworkers' union Community, stated the new measures posed "an existential threat" to UK steel.

Labor and business representatives urged the UK government to begin talks urgently with the EU on nation-specific tariff exemptions, pointing out that the UK was now the European Union's primary export market.

Broader Context

Sector representatives in the European Union have repeatedly cautioned for several months that their own industry faces being "wiped out" through the increased duties on American market shipments combined with high energy costs and cheap Chinese competition.

The steel industry on in both the UK and EU is described as a foundational industry, providing basic materials in products ranging from skyscraper structures, wind turbines and railways to dishwashers and kitchenware.

Adoption and Next Steps

These proposals require approval by EU nations and the European parliament, with the European Commission president calling on member states and MEPs to move quickly in support of the proposal.

If the plan is ratified, the EU will cut its current duty-free quota by 47% to 18.3m tonnes a year, a volume previously recorded in 2013. It will impose a fifty percent tariff on imports beyond the quota and oblige nations shipping to the bloc to state the production origin to avoid bypassing of the sanctions.

Exemptions and Global Partnerships

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

Alongside the proposal, the EU is pursuing a "steel partnership" with the US to protect their respective economies from excess production.

EU must take immediate action, and firmly, before operations cease in large parts of the EU steel industry and its value chains.