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

Major Challenge for UK Steel Exports

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

New EU Measures and Regulations

In its plan presented to the EU legislature this week, the European Commission also proposed slashing the existing quota for duty-free imports and requiring international producers to disclose where the steel was melted and poured to prevent China diverting exports through third nations.

The European steel industry was on the verge of collapse – these measures safeguard it so that investments can be made, reduce emissions, and regain competitiveness.

Replacement of Existing System

The proposals are intended to supersede a quota system 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 "disastrous" for the sector, a European official said.

Sector Reaction and Concerns

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

He called on the UK authorities to "acknowledge the critical necessity to implement domestic protections to protect" the British steel sector – which is still reeling from a 25% tariff from the US recently – from the risk of vast quantities of world steel diverted away from US and European markets.

This flood of imports "might prove terminal for numerous steel companies.

Labor and Political Calls

Union leaders, assistant general secretary at steelworkers' union Community, stated the proposed changes represented "a survival risk" to UK steel.

Labor and business representatives urged Keir Starmer to begin talks immediately with the EU on country-specific duty-free quotas, noting that the UK was now the European Union's No 1 trading partner.

Broader Context

Industry leaders in the European Union have also been warning for months that their own industry faces being "eliminated" through the increased duties on exports to the US combined with high energy costs and cheap Chinese competition.

The steel industry on both sides of the Channel is considered a foundational industry, providing basic materials in everything from building frameworks, wind turbines and railways to household appliances and cutlery.

Adoption and Future Actions

The new measures must be agreed by EU nations and the European parliament, with the European Commission president urging member states and European parliament members to move quickly in support of the initiative.

If the plan is ratified, the EU will reduce its current duty-free quota by 47% to 18.3 million tons a year, a volume previously recorded in 2013. It will apply a 50% tariff on foreign steel beyond the quota and require countries shipping to the EU to declare the production origin to prevent circumvention of the measures.

Exceptions and International Cooperation

Norway, Iceland, and Liechtenstein will not be subject to tariff quotas or duties due to their close trading relationship in the EEA, the European Union has said.

Alongside the proposal, the EU is seeking a "metals alliance" with the US to protect their national industries from overcapacity.

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