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EU officials have announced they will mirror Donald Trump's import duties on steel, increasing to double levies on foreign steel to 50% in a action condemned as "a survival risk" to the industry in Britain.

Unprecedented Crisis for UK Steel Industry

With eighty percent of British exports going to the EU, this policy shift creates the British steel sector's largest crisis, as stated by the industry association speaking for the sector.

New EU Proposals and Rules

In its plan submitted to the EU legislature this week, the European Commission additionally suggested cutting the current allowance for duty-free imports and obliging foreign suppliers to declare where the steel was melted and poured to stop China diverting exports through other countries.

EU steel sector stood at the brink of failure – these measures safeguard it so that investments can be made, decarbonise, and regain competitiveness.

Replacement of Existing System

These measures are designed to supersede a quota system that has been functioning for the past seven years and which is due to expire in 2026 and is now seen as outdated. Inaction could have been "catastrophic" for the industry, a European official said.

Sector Response and Concerns

Nevertheless, industry representatives, head of the industry body UK Steel, stated EU doubling its tariffs would pose "the most severe challenge the British steel sector has encountered".

He called on the government to "acknowledge the urgent need to implement its own measures to protect" the British steel sector – which is still reeling from a twenty-five percent tariff from the US recently – from the threat of millions of tonnes of global steel redirected from US and European markets.

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

Union and Government Pressure

Alasdair McDiarmid, assistant general secretary at labor union Community, said the proposed changes posed "an existential threat" to British steel production.

Unions and industry leaders called on the UK government to start negotiations urgently with the EU on country-specific tariff exemptions, noting that the UK was now the European Union's primary export market.

Broader Context

Industry leaders in the European Union have also been warning for months that their own industry confronts being "wiped out" through the increased duties on exports to the US combined with rising energy prices and low-cost Chinese imports.

The steel industry on both sides of the Channel is considered a foundational industry, providing basic materials in products ranging from building frameworks, renewable energy equipment and railways to household appliances and cutlery.

Adoption and Next Steps

The new measures require approval by EU nations and the EU legislature, with the European Commission president calling on national governments and European parliament members to move quickly in backing the proposal.

Should approval be granted, the European Union will cut its current duty-free quota by 47% to 18.3m tonnes a annually, a volume last seen in 2013. It will apply a 50% duty on imports exceeding the limit and require nations exporting into the bloc to declare the production origin to avoid bypassing of the measures.

Exemptions and International Cooperation

These European nations will not be subject to import limits or duties because of their strong economic ties in the European Economic Area, the European Union has said.

Alongside the proposal, the European Union is seeking a "metals alliance" with the United States to protect their respective economies from overcapacity.

The European Union must take immediate action, and decisively, before operations cease in significant portions of the EU steel industry and its value chains.