🔗 Share this article

The European Union revealed plans to adopt the United States' import duties on steel, increasing to double levies on imports to 50% in a move condemned as "an existential threat" to the industry in Britain.

Unprecedented Crisis for British Steel Industry

With 80% of UK steel shipments destined for the European Union, this policy shift represents the UK steel industry's biggest ever crisis, as stated by the lobby group speaking for the industry.

European Commission Measures and Rules

Through its proposal submitted to the EU legislature this week, the European Commission additionally suggested cutting the existing quota for tariff-exempt steel and requiring international producers to disclose the origin of steel production to stop China diverting exports through third nations.

EU steel sector was on the verge of collapse – these measures safeguard it so that investments can be made, reduce emissions, and regain competitiveness.

Replacement of Existing System

These measures are designed to replace a quota system that has been in operation for the last seven years and which is due to expire in 2026 and is now considered not fit for purpose. To do nothing could have been "fatal" for the sector, a European official said.

Sector Reaction and Warnings

However, Gareth Stace, head of the industry body British Steel, stated Brussels increasing duties would pose "the biggest crisis the UK steel industry has ever faced".

There were calls for the UK authorities to "recognise the critical necessity to put in place its own measures to protect" the UK steel industry – which is affected by a twenty-five percent duty imposed by Trump recently – from the threat of vast quantities of global steel diverted away from US and European markets.

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

Labor and Political Calls

Union leaders, representative at labor union Community, said the new measures posed "an existential threat" to UK steel.

Unions and industry leaders urged Keir Starmer to begin talks immediately with the EU on country-specific tariff exemptions, noting that the United Kingdom was now the EU's No 1 export market.

Broader Context

Sector representatives in the European Union have repeatedly cautioned for months that their own industry faces being "eliminated" through the increased duties on American market shipments combined with high energy costs and cheap Chinese competition.

The steel industry on both sides of the Channel is described as a foundational industry, providing elemental components in products ranging from skyscraper structures, renewable energy equipment and railways to dishwashers and cutlery.

Adoption and Next Steps

These proposals must be agreed by EU nations and the European parliament, with the EU executive head urging member states and European parliament members to act fast in support of the proposal.

Should approval be granted, the EU will reduce its existing tariff-free allowance by 47% to 18.3 million tons a annually, a level previously recorded in 2013. It will apply a 50% tariff on foreign steel exceeding the limit and oblige countries shipping to the EU to declare the production origin to avoid bypassing of the sanctions.

Exceptions and International Cooperation

Norway, Iceland, and Liechtenstein will not be subject to import limits or tariffs because of their strong economic ties in the European Economic Area, the European Union has said.

In addition to these measures, the European Union is seeking a "metals alliance" with the United States to protect their respective economies from overcapacity.

The European Union must take immediate action, and firmly, before all lights go out in large parts of the EU steel industry and its supply networks.