European Union's Plan to Align With US Steel Tariffs Poses 'Survival Risk' to UK's Steel Sector

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

Major Challenge for British Steel Exports

Given that eighty percent of British exports going to the EU, this policy shift poses the UK steel industry's largest challenge, as stated by the lobby group speaking for the sector.

New EU Proposals and Rules

In its plan presented to the EU legislature on Tuesday, the EU executive additionally suggested cutting the current allowance for tariff-exempt steel and obliging international producers to state the origin of steel production to prevent Chinese producers diverting exports through third nations.

The European steel industry faced potential collapse – we are protecting it so that it can invest, reduce emissions, and become competitive again.

Overhaul of Current Framework

The proposals are intended to replace a import framework that has been functioning for the past seven years and which is due to expire in 2026 and is now seen as ineffective. To do nothing could have been "fatal" for the industry, one EU official said.

Sector Response and Concerns

Nevertheless, Gareth Stace, from the industry body UK Steel, said Brussels doubling its tariffs would pose "the biggest crisis the UK steel industry has encountered".

He called on the government to "recognise the urgent need to put in place its own measures to defend" the British steel sector – which is affected by a twenty-five percent duty from Trump earlier this year – from the risk of millions of tonnes of global steel redirected from US and European markets.

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

Union and Government Calls

Union leaders, assistant general secretary at steelworkers' union the industry union, stated the new measures represented "a survival risk" to British steel production.

Unions and industry leaders called on Keir Starmer to begin talks urgently with the EU on country-specific tariff exemptions, pointing out that the UK was now the EU's primary trading partner.

Industry Background

Industry leaders in the EU have repeatedly cautioned for several months that their own industry confronts being "eliminated" through the new 50% tariffs on exports to the US along with rising energy prices and low-cost Chinese imports.

The steel industry on both sides of the Channel is described as a foundational industry, providing elemental components in everything from building frameworks, wind turbines and transport infrastructure to household appliances and kitchenware.

Implementation and Next Steps

The new measures require approval by member states and the European parliament, with the EU executive head urging national governments and European parliament members to act fast in support of the proposal.

If the plan is ratified, the EU will reduce its current duty-free quota by forty-seven percent to 18.3 million tons a year, a volume previously recorded in 2013. It will impose a 50% tariff on foreign steel beyond the quota and oblige nations shipping to the EU to state where the steel was melted and poured to avoid bypassing of the sanctions.

Exceptions and Global Partnerships

Norway, Iceland, and Liechtenstein will be exempt from tariff quotas or duties due to their strong economic ties in the European Economic Area, the EU has said.

Alongside the proposal, the EU is pursuing a "metals alliance" with the United States to ringfence their respective economies from overcapacity.

The European Union needs to act now, and decisively, prior to all lights go out in large parts of the EU steel industry and its value chains.