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EU officials revealed they will mirror the United States' import duties on steel, effectively doubling taxes on imports to fifty percent in a decision described as "a survival risk" to the sector in the UK.

Major Challenge for UK Steel Industry

Given that 80% of UK steel shipments going to the EU, this change creates the UK steel industry's biggest ever crisis, according to the lobby group representing the industry.

New EU Measures and Regulations

In its plan presented to the EU legislature this week, the EU executive additionally suggested slashing the existing quota for duty-free imports and obliging foreign suppliers to declare the origin of steel production to prevent Chinese producers diverting exports through third nations.

The European steel industry faced potential collapse – these measures safeguard it so that it can invest, reduce emissions, and regain competitiveness.

Overhaul of Current Framework

These measures are designed to replace a quota system that has been functioning for the past seven years and which is set to expire in 2026 and is now seen as ineffective. Inaction could have been "fatal" for the sector, one EU official said.

Industry Response and Warnings

Nevertheless, Gareth Stace, head of the trade association UK Steel, stated EU doubling its tariffs would create "the biggest crisis the British steel sector has ever faced".

He called on the government to "acknowledge the critical necessity to put in place domestic protections to defend" the UK steel industry – which is still reeling from a 25% duty imposed by Trump recently – from the risk of millions of tonnes of world steel diverted away from US and European markets.

This flood of imports "might prove terminal for many of our remaining steel companies.

Union and Political Pressure

Alasdair McDiarmid, representative at labor union Community, stated the new measures posed "a survival risk" to British steel production.

Labor and business representatives urged Keir Starmer to begin talks urgently with the EU on nation-specific tariff exemptions, pointing out that the UK was now the EU's primary export market.

Broader Context

Sector representatives in the European Union have also been warning for months that the European steel sector confronts being "eliminated" through the new 50% tariffs on exports to the US combined with high energy costs 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 transport infrastructure to household appliances and cutlery.

Implementation and Future Actions

The new measures must be agreed by EU nations and the EU legislature, with the European Commission president calling on member states and MEPs to act fast in support of the proposal.

If the plan is ratified, the EU will cut its current duty-free quota by 47% to 18.3m tonnes a year, a volume last seen in 2013. It will apply a fifty percent tariff on foreign steel beyond the quota and oblige nations shipping to the bloc to state where the steel was melted and poured to avoid bypassing of the measures.

Exceptions and Global Partnerships

These European nations will not be subject to tariff quotas or duties due to their strong economic ties in the EEA, the EU has said.

Alongside the proposal, the European Union is seeking a "steel partnership" with the United States to ringfence their respective economies from overcapacity.

EU needs to act now, and decisively, before all lights go out in significant portions of the EU steel industry and its value chains.