🔗 Share this article European Union's Plan to Align With US Steel Tariffs Poses 'Existential Threat' to UK's Steel Sector EU officials declared they will mirror Donald Trump's steel tariffs, effectively doubling taxes on foreign steel to 50% in a decision described as "a survival risk" to the industry in Britain. Unprecedented Crisis for British Steel Exports Given that eighty percent of UK steel shipments destined for the EU, this change poses the British steel sector's biggest ever challenge, according to the lobby group representing the sector. New EU Measures and Regulations Through its proposal presented to the EU legislature on Tuesday, the EU executive additionally suggested cutting the current allowance for duty-free imports and requiring foreign suppliers to declare the origin of steel production to prevent China diverting exports through third nations. The European steel industry stood at the brink of failure – these measures safeguard it so that it can invest, reduce emissions, and become competitive again. Replacement of Current Framework The proposals are intended to supersede a import framework that has been functioning 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, one EU official stated. Sector Response and Warnings Nevertheless, industry representatives, from the trade association British Steel, stated Brussels increasing duties would create "the biggest crisis the British steel sector has encountered". There were calls for the government to "acknowledge the critical necessity to implement domestic protections to protect" the British steel sector – which is affected by a twenty-five percent duty from the US earlier this year – from the risk of millions of tonnes of global steel diverted away from American and EU markets. This flood of imports "could be fatal for many of our remaining steel companies. Labor and Political Pressure Union leaders, representative at steelworkers' union Community, said the new measures posed "a survival risk" to UK steel. Unions and industry leaders urged Keir Starmer to start negotiations urgently with the European Union on country-specific tariff exemptions, noting that the UK was now the EU's primary export market. Industry Background Sector representatives in the EU have also been warning for months that their own industry faces being "eliminated" through the new 50% tariffs on exports to the US along with rising energy prices and low-cost Chinese imports. Steel on in both the UK and EU is described as a essential sector, supplying basic materials in everything from building frameworks, wind turbines and transport infrastructure to household appliances and cutlery. Implementation and Future Actions The new measures require approval by member states 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 European Union will reduce its current duty-free quota by forty-seven percent to 18.3 million tons a annually, a level previously recorded in 2013. It will impose a fifty percent duty on foreign steel exceeding the limit and require countries exporting into the bloc to declare the production origin to prevent circumvention of the measures. Exemptions and International Cooperation Norway, Iceland, and Liechtenstein will not be subject to import limits or tariffs because of their close trading relationship in the European Economic Area, the EU has confirmed. In addition to these measures, the EU is seeking a "steel partnership" with the US to protect their respective economies from excess production. EU needs to act now, and decisively, prior to all lights go out in large parts of the EU steel industry and its supply networks.