🔗 Share this article European Union's Plan to Match Trump's Steel Tariffs Spurs 'Existential Threat' to British Steel Sector The European Union revealed they will mirror Donald Trump's import duties on steel, effectively doubling levies on imports to 50% in a move condemned as "a critical danger" to the industry in Britain. Major Challenge for British Steel Exports With 80% of UK steel shipments destined for the EU, this change represents the UK steel industry's most severe challenge, according to the lobby group representing the sector. European Commission Proposals and Regulations Through its proposal submitted to the European parliament this week, the EU executive also proposed slashing the existing quota for tariff-exempt steel and obliging foreign suppliers to state where the steel was melted and poured to stop Chinese producers diverting exports through third nations. EU steel sector stood at the brink of failure – we are protecting it so that it can invest, decarbonise, and become competitive again. Replacement of Current Framework These measures are designed to supersede a quota system that has been functioning for the last seven years and which is set to expire in 2026 and is now considered outdated. To do nothing could have been "disastrous" for the industry, one EU official said. Industry Response and Concerns However, Gareth Stace, from the trade association UK Steel, said Brussels increasing duties would pose "the biggest crisis the UK steel industry has encountered". He called on the government to "recognise the urgent need to implement its own measures to protect" the UK steel industry – which is affected by a twenty-five percent tariff from the US earlier this year – from the risk of millions of tonnes of global steel diverted away from American and EU markets. This surge in foreign steel "might prove fatal for numerous steel companies. Labor and Political Pressure Union leaders, representative at steelworkers' union the industry union, stated the proposed changes posed "an existential threat" to UK steel. Labor and business representatives called on the UK government to start negotiations urgently with the European Union on country-specific tariff exemptions, noting that the United Kingdom was now the EU's primary export market. Broader Context Sector representatives in the European Union have repeatedly cautioned for months that the European steel sector confronts being "wiped out" through the increased duties on American market shipments combined 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 skyscraper structures, renewable energy equipment and railways to household appliances and kitchenware. Implementation and Future Actions The new measures require approval by EU nations and the EU legislature, with the EU executive head calling on national governments 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 18.3m tonnes a year, a volume last seen in 2013. It will impose a 50% tariff on foreign steel exceeding the limit and oblige countries shipping to the bloc to state the production origin to prevent circumvention of the measures. Exemptions and Global Partnerships These European nations will be exempt from tariff quotas or duties due to their strong economic ties in the European Economic Area, the EU has confirmed. Alongside the proposal, the EU is pursuing a "steel partnership" with the US 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 value chains.