🔗 Share this article

The European Union have announced plans to mirror the United States' steel tariffs, increasing to double levies on imports to 50% in a decision condemned as "a critical danger" to the industry in the UK.

Unprecedented Crisis for UK Steel Industry

With eighty percent of British exports destined for the European Union, this change represents the UK steel industry's most severe crisis, as stated by the industry association representing the sector.

European Commission Proposals and Rules

Through its proposal submitted to the European parliament this week, the EU executive additionally suggested slashing the existing quota for tariff-exempt steel and requiring international producers to disclose the origin of steel production to stop China diverting exports through other countries.

EU steel sector faced potential collapse – we are protecting it so that investments can be made, reduce emissions, and become competitive again.

Overhaul of Current Framework

The proposals are designed to replace a quota system that has been in operation for the last seven years and which is set to expire in 2026 and is now seen as outdated. To do nothing could have been "catastrophic" for the sector, a European official stated.

Industry Response and Concerns

Nevertheless, Gareth Stace, head of the industry body UK Steel, said Brussels doubling its tariffs would create "the most severe challenge the UK steel industry has encountered".

There were calls for the UK authorities to "recognise the urgent need to put in place its own measures to defend" the British steel sector – which is affected by a 25% duty imposed by Trump earlier this year – from the risk of millions of tonnes of global steel redirected from US and European markets.

This surge in foreign steel "might prove terminal for many of our remaining steel companies.

Labor and Government Pressure

Union leaders, assistant general secretary at steelworkers' union the industry union, said the new measures posed "a survival risk" to UK steel.

Unions and industry leaders called on the UK government to start negotiations urgently with the European Union on country-specific duty-free quotas, pointing out that the United Kingdom was now the European Union's primary trading partner.

Broader Context

Sector representatives in the EU have repeatedly cautioned for months that the European steel sector confronts being "wiped out" through the increased duties on American market shipments along with high energy costs and cheap Chinese competition.

Steel on in both the UK and EU is described as a essential sector, providing basic materials in products ranging from building frameworks, wind turbines and railways to dishwashers and cutlery.

Implementation and Next Steps

These proposals must be agreed by EU nations and the EU legislature, with the European Commission president urging member states and European parliament members to act fast in backing the initiative.

Should approval be granted, the European Union will cut its current duty-free quota by 47% to 18.3 million tons a year, a level last seen in 2013. It will apply a 50% duty on foreign steel exceeding the limit and oblige countries shipping to the bloc to declare the production origin to prevent circumvention of the sanctions.

Exemptions and International Cooperation

Norway, Iceland, and Liechtenstein will be exempt from tariff quotas or duties due to their close trading relationship in the European Economic Area, the EU has confirmed.

Alongside the proposal, the European Union is seeking a "steel partnership" with the US to protect their national industries from overcapacity.

EU needs to act now, and decisively, before operations cease in large parts of the EU steel industry and its supply networks.