🔗 Share this article

The European Union declared they will match Donald Trump's steel tariffs, increasing to double taxes on foreign steel to 50% in a move condemned as "a survival risk" to the sector in Britain.

Unprecedented Crisis for British Steel Industry

Given that 80% of British exports destined for the European Union, this change poses the British steel sector's biggest ever challenge, as stated by the industry association speaking for the industry.

European Commission Measures and Regulations

In its plan submitted to the EU legislature this week, the European Commission also proposed cutting the current allowance for duty-free imports and requiring international producers to declare the origin of steel production to prevent China sneaking products in through third nations.

EU steel sector faced potential collapse – we are protecting it so that investments can be made, decarbonise, and become competitive again.

Overhaul of Existing System

These measures are designed to replace a quota system that has been in operation for the last seven years and which is set to expire in 2026 and is now seen as ineffective. To do nothing could have been "catastrophic" for the sector, a European official stated.

Sector Response and Warnings

However, industry representatives, from the trade association UK Steel, said EU increasing duties would pose "the biggest crisis the UK steel industry has encountered".

He called on the UK authorities to "recognise the critical necessity to implement domestic protections to protect" the British steel sector – which is still reeling from a twenty-five percent tariff imposed by Trump recently – from the threat of vast quantities of global steel diverted away from US and European markets.

This surge in foreign steel "might prove terminal for numerous steel companies.

Labor and Government Calls

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

Unions and industry leaders called on the UK government to begin talks immediately with the EU on nation-specific duty-free quotas, pointing out that the UK was now the EU's No 1 trading partner.

Industry Background

Sector representatives in the European Union have repeatedly cautioned for months that their own industry faces being "eliminated" through the increased duties on American market shipments combined with rising energy prices 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 skyscraper structures, renewable energy equipment and railways to household appliances and kitchenware.

Adoption and Future Actions

These proposals require approval by member states and the European parliament, with the European Commission president urging member states and MEPs to move quickly in backing the proposal.

If the plan is ratified, the EU will reduce its current duty-free quota by 47% to 18.3 million tons a annually, a level last seen in 2013. It will impose a fifty percent duty on imports exceeding the limit and require nations exporting into the EU to declare the production origin to avoid bypassing of the measures.

Exceptions and International Cooperation

Norway, Iceland, and Liechtenstein will not be subject to tariff quotas or duties because of their strong economic ties in the EEA, the EU has confirmed.

In addition to these measures, the EU is pursuing a "metals alliance" with the United States to ringfence their national industries from excess production.

EU needs to act now, and firmly, before operations cease in large parts of the EU steel industry and its value chains.