EU's Proposal to Align With Trump's Steel Tariffs Spurs 'Survival Risk' to British Steel Sector

The European Union have announced they will mirror Donald Trump's import duties on steel, increasing to double levies on imports to 50% in a action condemned as "a critical danger" to the sector in the UK.

Unprecedented Crisis for British Steel Exports

With 80% of British exports destined for the European Union, this policy shift creates the British steel sector's largest crisis, as stated by the lobby group representing the sector.

New EU Proposals and Regulations

In its plan submitted to the EU legislature this week, the EU executive additionally suggested cutting the existing quota for tariff-exempt steel and obliging foreign suppliers to state 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 Current Framework

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 industry, one EU official stated.

Sector Reaction and Warnings

Nevertheless, industry representatives, head of the trade association UK Steel, stated Brussels doubling its tariffs would create "the most severe challenge the British steel sector has ever faced".

He called on the UK authorities to "acknowledge the critical necessity to implement 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 threat of vast quantities of global steel diverted away from American and EU markets.

This surge in foreign steel "might prove fatal for numerous steel companies.

Labor and Political Pressure

Alasdair McDiarmid, representative at steelworkers' union the industry union, said the new measures posed "a survival risk" to British steel production.

Unions and industry leaders urged the UK government to begin talks immediately with the European Union on country-specific tariff exemptions, pointing out that the UK was now the EU's primary trading partner.

Industry Background

Sector representatives in the EU have also been warning for months that their own industry confronts being "wiped out" through the increased duties on American market shipments combined with rising energy prices and low-cost Chinese imports.

The steel industry on in both the UK and EU is considered a essential sector, supplying elemental components in products ranging from skyscraper structures, renewable energy equipment and transport infrastructure to dishwashers and cutlery.

Adoption and Future Actions

These proposals require approval by member states and the EU legislature, with the EU executive head urging national governments and MEPs to act fast in backing the proposal.

If the plan is ratified, the EU will cut its current duty-free quota by forty-seven percent to 18.3 million tons a year, a level previously recorded in 2013. It will apply a 50% duty on foreign steel beyond the quota and require nations exporting into the bloc to state the production origin to prevent circumvention of the sanctions.

Exceptions and International Cooperation

Norway, Iceland, and Liechtenstein will not be subject to tariff quotas or duties 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 ringfence their respective economies from excess production.

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