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The European Union declared they will adopt Donald Trump's steel tariffs, effectively doubling taxes on foreign steel to 50% in a decision condemned as "a survival risk" to the industry in the UK.

Major Challenge for British Steel Exports

With 80% of British exports destined for the EU, this policy shift represents the British steel sector's most severe crisis, as stated by the lobby group representing the industry.

European Commission Proposals and Rules

Through its proposal presented to the EU legislature on Tuesday, the EU executive also proposed reducing the existing quota for duty-free imports and requiring international producers to state where the steel was melted and poured to prevent Chinese producers sneaking products in through other countries.

The European steel industry faced potential collapse – we are protecting it so that investments can be made, decarbonise, and regain competitiveness.

Replacement of Current Framework

The proposals are designed to supersede 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framework that has been functioning for the last seven years and which is due to expire in 2026 and is now seen as outdated. Inaction could have been "catastrophic" for the sector, a European official said.

Industry Reaction and Concerns

However, Gareth Stace, head of the industry body UK Steel, stated Brussels doubling its tariffs would pose "the biggest crisis the UK steel industry has ever faced".

There were calls for the UK authorities to "acknowledge the critical necessity to put in place domestic protections to defend" the British steel sector – which is still reeling from a twenty-five percent tariff imposed by the US recently – from the risk of millions of tonnes of global steel diverted away from American and EU markets.

This flood of imports "could be fatal for many of our remaining steel companies.

Union and Government Calls

Alasdair McDiarmid, assistant general secretary at labor union Community, stated the proposed changes posed "a survival risk" to British steel production.

Unions and industry leaders called on Keir Starmer to start negotiations immediately with the EU on country-specific tariff exemptions, noting that the UK was now the European Union's No 1 trading partner.

Broader Context

Industry leaders in the European Union have repeatedly cautioned for months that their own industry faces 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 basic materials in everything from building frameworks, wind turbines and transport infrastructure to dishwashers and cutlery.

Adoption and Next Steps

The new measures require approval by member states and the European parliament, with the European Commission president urging national governments and European parliament members to act fast in support of the initiative.

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 impose a 50% duty on imports beyond the quota and oblige countries exporting into the bloc to declare the production origin to prevent circumvention of the measures.

Exemptions and International Cooperation

These European nations will not be subject to import limits or tariffs because of their strong economic ties in the EEA, the European Union has confirmed.

Alongside the proposal, the EU is pursuing a "steel partnership" with the United States to protect their national industries from overcapacity.

The European Union needs to act now, and decisively, before all lights go out in significant portions of the European steel sector and its supply networks.