🔗 Share this article European Union's Proposal to Match US Steel Tariffs Poses 'Existential Threat' to British Steel Sector The European Union revealed plans to adopt the United States' steel tariffs, increasing to double levies on imports to 50% in a move described as "an existential threat" to the industry in Britain. Unprecedented Crisis for UK Steel Industry Given that 80% of British exports destined for the EU, this policy shift represents the British steel sector's most severe crisis, according to the lobby group speaking for the sector. New EU Proposals and Rules Through its proposal submitted to the EU legislature this week, the EU executive also proposed slashing the existing quota for duty-free imports and obliging foreign suppliers to declare where the steel was melted and poured to stop Chinese producers diverting exports through third nations. The European steel industry faced potential collapse – these measures safeguard it so that investments can be made, reduce emissions, and become competitive again. Overhaul of Existing System These measures are intended to replace a import framework that has been functioning for the last seven years and which is due to expire in 2026 and is now seen as outdated. To do nothing could have been "fatal" for the industry, a European official stated. Sector Response and Warnings Nevertheless, industry representatives, from the industry body British Steel, stated EU doubling its tariffs would create "the biggest crisis the UK steel industry has encountered". He called on the UK authorities to "acknowledge the urgent need to implement its own measures to defend" the UK steel industry – which is still reeling from a twenty-five percent duty imposed by the US recently – from the threat of millions of tonnes of global steel diverted away from US and European markets. This surge in foreign steel "could be fatal for numerous steel companies. Labor and Government Calls Union leaders, representative at steelworkers' union Community, stated the new measures represented "an existential threat" to British steel production. Labor and business representatives urged the UK government to begin talks urgently with the European Union on country-specific tariff exemptions, pointing out that the United Kingdom was now the EU's primary trading partner. Industry Background Industry leaders in the EU have repeatedly cautioned for several months that their own industry confronts being "eliminated" through the new 50% tariffs on exports to the US along with rising energy prices and low-cost Chinese imports. Steel on both sides of the Channel is considered a foundational industry, supplying elemental components in everything from building frameworks, wind turbines and railways to household appliances and cutlery. Adoption and Next Steps The new measures require approval by EU nations and the European parliament, with the European Commission president urging national governments and MEPs to move quickly in backing the initiative. If the plan is ratified, the EU will cut its existing tariff-free allowance by forty-seven percent to 18.3 million tons a year, a volume 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 state the production origin to avoid bypassing of the sanctions. Exceptions and International Cooperation These European nations will not be subject to tariff quotas or duties due to their close trading relationship in the EEA, the European Union has said. Alongside the proposal, the EU is pursuing a "metals alliance" 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 European steel sector and its supply networks.