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EU officials declared plans to adopt the United States' import duties on steel, increasing to double levies on foreign steel to 50% in a action described as "a survival risk" to the sector in the UK.

Unprecedented Crisis for British Steel Exports

Given that eighty percent of British exports going to the EU, this policy shift creates the British steel sector's biggest ever challenge, according to the industry association representing the sector.

New EU Proposals and Regulations

In its plan presented to the European parliament this week, the European Commission additionally suggested slashing the current allowance for duty-free imports and requiring international producers to disclose where the steel was melted and poured to stop China diverting exports through third nations.

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

Overhaul 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 due to expire in 2026 and is now considered ineffective. Inaction could have been "catastrophic" for the industry, one EU official stated.

Industry Reaction and Concerns

Nevertheless, Gareth Stace, head of the industry body British Steel, stated Brussels increasing duties would create "the most severe challenge the UK steel industry has encountered".

There were calls for the UK authorities to "acknowledge the critical necessity to implement its own measures to defend" the British steel sector – which is affected by a twenty-five percent tariff from the US earlier this year – from the risk of vast quantities of global steel redirected from American and EU markets.

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

Union and Government Pressure

Union leaders, representative at labor union Community, stated the proposed changes posed "an existential threat" to British steel production.

Labor and business representatives called on 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

Sector representatives in the European Union have also been warning for months that their own industry confronts being "wiped out" through the new 50% tariffs on exports to the US along with rising energy prices and cheap Chinese competition.

Steel on both sides of the Channel is considered a foundational industry, supplying basic materials in products ranging from building frameworks, renewable energy equipment and railways to dishwashers and kitchenware.

Implementation and Next Steps

The new measures require approval by member states and the European parliament, with the European Commission president urging member states and MEPs to act fast in support of the proposal.

Should approval be granted, the EU will reduce its existing tariff-free allowance by forty-seven percent to 18.3 million tons a year, a volume previously recorded in 2013. It will apply a 50% tariff on imports exceeding the limit and oblige countries shipping to the EU to declare the production origin to prevent circumvention of the sanctions.

Exceptions and International Cooperation

Norway, Iceland, and Liechtenstein will be exempt from import limits or duties due to their close trading relationship in the European Economic Area, the EU has said.

In addition to these measures, the European Union is seeking a "metals alliance" with the United States to protect their respective economies from overcapacity.

EU needs to act now, and firmly, before all lights go out in large parts of the EU steel industry and its supply networks.