EU's Plan to Align With Trump's Steel Tariffs Poses 'Survival Risk' to British Steel Sector

EU officials revealed they will adopt the United States' import duties on steel, effectively doubling levies on foreign steel to 50% in a move condemned as "an existential threat" to the sector in Britain.

Unprecedented Crisis for British Steel Industry

Given that eighty percent of UK steel shipments going to the European Union, this policy shift represents the British steel sector's biggest ever challenge, according to the industry association speaking for the sector.

New EU Proposals and Rules

Through its proposal presented to the European parliament this week, the European Commission additionally suggested cutting the existing quota for duty-free imports and requiring international producers to state the origin of steel production to prevent Chinese producers diverting exports through third nations.

EU steel sector stood at the brink of failure – we are protecting it so that it can invest, decarbonise, and regain competitiveness.

Overhaul of Existing System

These measures are designed to supersede a quota system that has been in operation for the last seven years and which is due to expire in 2026 and is now considered ineffective. To do nothing could have been "disastrous" for the industry, a European official said.

Sector Reaction and Warnings

However, industry representatives, head of the industry body British Steel, stated Brussels increasing duties would pose "the most severe challenge the British steel sector has ever faced".

There were calls for the government to "acknowledge the critical necessity to implement domestic protections to protect" the UK steel industry – which is affected by a 25% tariff imposed by Trump earlier this year – from the risk of millions of tonnes of global steel diverted away from US and European markets.

This surge in foreign steel "could be fatal for many of our remaining steel companies.

Union and Government Calls

Alasdair McDiarmid, assistant general secretary at steelworkers' union the industry union, stated the new measures represented "a survival risk" to UK steel.

Labor and business representatives called on the UK government to begin talks immediately 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 the European steel sector confronts being "wiped out" through the increased duties on American market shipments along with high energy costs and low-cost Chinese imports.

The steel industry on both sides of the Channel is considered a foundational industry, supplying elemental components in products ranging from building frameworks, renewable energy equipment and railways to dishwashers and cutlery.

Implementation and Future Actions

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

Should approval be granted, the EU will cut its existing tariff-free allowance by forty-seven percent to 18.3 million tons a annually, a volume last seen in 2013. It will apply a fifty percent tariff on imports beyond the quota and oblige countries shipping to the bloc to state the production origin to prevent circumvention 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 confirmed.

Alongside the proposal, the European Union is seeking a "steel partnership" with the US to protect their national industries from overcapacity.

The European Union must take immediate action, and firmly, prior to operations cease in large parts of the EU steel industry and its value chains.