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EU officials declared plans to match Donald Trump's steel tariffs, effectively doubling taxes on imports to 50% in a move condemned as "a critical danger" to the industry in Britain.

Unprecedented Crisis for UK Steel Exports

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

New EU Measures and Rules

In its plan presented to the EU legislature this week, the European Commission additionally suggested slashing the existing quota for duty-free imports and requiring foreign suppliers to declare the origin of steel production to stop Chinese producers diverting exports through other countries.

The European steel industry faced potential collapse – these measures safeguard it so that investments can be made, decarbonise, and regain competitiveness.

Overhaul of Current Framework

The proposals are intended to replace a quota system that has been in operation for the past seven years and which is set to expire in 2026 and is now seen as not fit for purpose. Inaction could have been "catastrophic" for the industry, a European official stated.

Industry Response and Concerns

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

There were calls for the government to "recognise the critical necessity to put in place domestic protections to defend" the UK steel industry – which is affected by a twenty-five percent tariff imposed by Trump recently – from the risk of millions of tonnes of world steel redirected from US and European markets.

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

Union and Government Calls

Alasdair McDiarmid, representative at steelworkers' union the industry union, stated the new measures posed "an existential threat" to British steel production.

Unions and industry leaders called on Keir Starmer to begin talks urgently with the EU on nation-specific tariff exemptions, pointing out that the UK was now the European Union's No 1 trading partner.

Industry Background

Sector representatives in the European Union have also been warning for months that their own industry faces being "wiped out" through the new 50% tariffs on exports to the US along with high energy costs and low-cost Chinese imports.

The steel industry on both sides of the Channel is described as a essential sector, providing basic materials in products ranging from building frameworks, renewable energy equipment and transport infrastructure to household appliances and kitchenware.

Implementation and Future Actions

The new measures require approval by EU nations and the EU legislature, with the European Commission president urging member states and MEPs to move quickly in backing the initiative.

Should approval be granted, the European Union will cut its current duty-free quota by 47% to 18.3 million tons a annually, a volume last seen in 2013. It will apply a fifty percent duty on foreign steel exceeding the limit and oblige countries shipping to the bloc to declare the production origin to avoid bypassing of the sanctions.

Exceptions and International Cooperation

These European nations will be exempt from import limits or duties because of their close trading relationship in the European Economic Area, the European Union has said.

In addition to these measures, the EU is pursuing a "steel partnership" with the US to protect their national industries from overcapacity.

EU must take immediate action, and decisively, before all lights go out in large parts of the EU steel industry and its value chains.