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The European Union revealed plans to mirror the United States' import duties on steel, effectively doubling levies on imports to fifty percent in a decision described as "an existential threat" to the industry in the UK.

Major Challenge for British Steel Industry

Given that 80% of UK steel shipments destined for the EU, this policy shift creates the British steel sector's biggest ever challenge, according to the lobby group speaking for the sector.

European Commission Measures and Rules

Through its proposal presented to the EU legislature this week, the European Commission also proposed slashing the current allowance for duty-free imports and requiring foreign suppliers to disclose where the steel was melted and poured to stop Chinese producers diverting exports through third nations.

The European steel industry stood at the brink of failure – we are protecting it so that it can invest, reduce emissions, and regain competitiveness.

Overhaul of Existing System

These measures are designed to replace a import framework that has been functioning for the last seven years and which is set to expire in 2026 and is now considered not fit for purpose. To do nothing could have been "fatal" for the sector, one EU official stated.

Sector Response and Concerns

However, industry representatives, head of the trade association British Steel, stated Brussels increasing duties would create "the most severe challenge the UK steel industry has encountered".

There were calls for the government to "recognise the urgent need to put in place domestic protections to protect" the UK steel industry – which is affected by a 25% duty from the US earlier this year – from the risk of millions of tonnes of world steel diverted away from American and EU markets.

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

Labor and Government Calls

Union leaders, representative at steelworkers' union Community, stated the new measures posed "a survival risk" to UK steel.

Labor and business representatives urged Keir Starmer to begin talks immediately with the European Union on nation-specific tariff exemptions, noting that the UK was now the European Union's No 1 trading partner.

Broader Context

Industry leaders in the EU have repeatedly cautioned for several months that the European steel sector faces being "wiped out" through the new 50% tariffs on American market shipments along with rising energy prices and low-cost Chinese imports.

The steel industry on in both the UK and EU is considered a foundational industry, supplying basic materials in products ranging from skyscraper structures, renewable energy equipment and railways to household appliances and cutlery.

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 European parliament members to act fast in backing the proposal.

Should approval be granted, the EU will reduce its existing tariff-free allowance by 47% to 18.3m tonnes a year, a level previously recorded in 2013. It will impose a 50% tariff on foreign steel exceeding the limit and require nations shipping to the bloc to declare where the steel was melted and poured to prevent circumvention of the measures.

Exceptions and Global Partnerships

These European nations will not be subject to tariff quotas or duties due to their close trading relationship in the EEA, the EU has said.

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

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