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EU officials have announced plans to mirror the United States' steel tariffs, effectively doubling levies on foreign steel to 50% in a move condemned as "a survival risk" to the industry in the UK.

Major Challenge for UK Steel Industry

Given that eighty percent of UK steel shipments going to the European Union, this change poses the UK steel industry's most severe crisis, according to the industry association representing the sector.

New EU Proposals and Regulations

In its plan submitted to the EU legislature this week, the EU executive also proposed slashing the current allowance for duty-free imports and requiring foreign suppliers to declare where the steel was melted and poured to prevent China sneaking products in through third nations.

The European steel industry was on the verge of collapse – these measures safeguard it so that investments can be made, decarbonise, and become competitive again.

Replacement of Current Framework

The proposals are designed to supersede a import framework that has been in operation for the past seven years and which is set to expire in 2026 and is now considered ineffective. To do nothing could have been "disastrous" for the industry, a European official said.

Industry Reaction and Concerns

Nevertheless, Gareth Stace, head of the industry body UK Steel, said EU doubling its tariffs would pose "the most severe challenge the UK steel industry has ever faced".

He called on the government to "recognise the critical necessity to put in place domestic protections to protect" the British steel sector – which is still reeling from a twenty-five percent tariff from Trump earlier this year – from the risk of vast quantities of global steel diverted away from US and European markets.

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

Labor and Political Calls

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

Unions and industry leaders urged the UK government to begin talks urgently with the European Union on country-specific duty-free quotas, noting that the United Kingdom was now the European Union's primary export market.

Industry Background

Industry leaders in the EU have also been warning for several months that their own industry confronts being "wiped out" through the new 50% tariffs on American market shipments along with high energy costs and cheap Chinese competition.

The steel industry on in both the UK and EU is considered a essential sector, supplying basic materials in everything from building frameworks, renewable energy equipment and transport infrastructure to dishwashers and kitchenware.

Implementation and Next Steps

These proposals require approval by EU nations and the European parliament, with the European Commission president urging national governments and MEPs to act fast in support of the initiative.

Should approval be granted, the EU will cut its current duty-free quota by forty-seven percent to 18.3m tonnes a annually, a level last seen in 2013. It will impose a 50% duty on foreign steel beyond the quota and oblige countries exporting into the EU to declare where the steel was melted and poured to avoid bypassing of the sanctions.

Exemptions and International Cooperation

Norway, Iceland, and Liechtenstein will be exempt from import limits or tariffs because of their strong economic ties in the EEA, the European Union has said.

In addition to these measures, the EU is pursuing a "steel partnership" with the United States to ringfence their respective economies from excess production.

The European Union must take immediate action, and firmly, before operations cease in large parts of the European steel sector and its value chains.