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The European Union have announced they will adopt Donald Trump's import duties on steel, effectively doubling levies on imports to 50% in a decision described as "a survival risk" to the sector in the UK.

Major Challenge for British Steel Exports

Given that 80% of UK steel shipments going to the European Union, this change represents the British steel sector's biggest ever crisis, according to the lobby group representing the sector.

European Commission Measures and Regulations

In its plan submitted to the European parliament this week, the European Commission also proposed cutting the existing quota for duty-free imports and obliging foreign suppliers to state where the steel was melted and poured to stop Chinese producers sneaking products in through other countries.

EU steel sector faced potential collapse – these measures safeguard it so that investments can be made, reduce emissions, and become competitive again.

Overhaul of Existing System

These measures are designed to supersede a import framework that has been in operation for the last seven years and which is set to expire in 2026 and is now considered not fit for purpose. To do nothing could have been "catastrophic" for the sector, a European official said.

Industry Reaction and Warnings

Nevertheless, industry representatives, head of the trade association British Steel, stated Brussels doubling its tariffs would create "the biggest crisis the UK steel industry has ever faced".

He called on the UK authorities to "acknowledge the critical necessity to put in place domestic protections to protect" the UK steel industry – which is still reeling from a 25% tariff from Trump recently – from the risk of millions of tonnes of world steel diverted away from American and EU markets.

This surge in foreign steel "might prove fatal for many of our remaining steel companies.

Union and Political Pressure

Union leaders, representative at steelworkers' union Community, said 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 European Union on country-specific tariff exemptions, pointing out that the United Kingdom was now the EU's primary trading partner.

Industry Background

Industry leaders in the European Union have also been warning for several months that the European steel sector faces being "eliminated" through the increased duties on American market shipments along with high energy costs and low-cost Chinese imports.

Steel on both sides of the Channel is considered a foundational industry, supplying elemental components in everything from building frameworks, wind turbines and transport infrastructure to dishwashers and kitchenware.

Implementation and Future Actions

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

Should approval be granted, the European Union will cut its current duty-free quota by 47% to 18.3m tonnes a year, a volume previously recorded in 2013. It will apply a 50% duty on imports exceeding the limit and require countries exporting into 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 not be subject to import limits or tariffs due to their close trading relationship in the EEA, the EU has confirmed.

In addition to these measures, the European Union is pursuing a "metals alliance" with the US to ringfence their national industries from overcapacity.

The European Union must take immediate action, and firmly, before operations cease in significant portions of the EU steel industry and its supply networks.