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The European Union declared they will match Donald Trump's import duties on steel, increasing to double levies on imports to 50% in a action condemned as "a survival risk" to the industry in the UK.

Unprecedented Crisis for UK Steel Exports

With 80% of British exports going to the European Union, this change poses the UK steel industry's most severe challenge, according to the industry association representing the sector.

European Commission Proposals and Rules

Through its proposal presented to the EU legislature on Tuesday, the European Commission additionally suggested slashing the existing quota for duty-free imports and requiring foreign suppliers to state the origin of steel production to stop China sneaking products in through other countries.

The European steel industry was on the verge of collapse – we are protecting it so that investments can be made, reduce emissions, and become competitive again.

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system that has been in operation for the last seven years and which is due to expire in 2026 and is now considered outdated. Inaction could have been "catastrophic" for the industry, a European official said.

Sector Reaction and Warnings

However, Gareth Stace, head of the industry body British Steel, stated Brussels doubling its tariffs would pose "the most severe challenge the British steel sector has encountered".

There were calls for the UK authorities to "recognise the critical necessity to put in place its own measures to defend" the British steel sector – which is affected by a 25% tariff from Trump earlier this year – from the risk of millions of tonnes of world steel redirected from American and EU markets.

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

Union and Government Pressure

Alasdair McDiarmid, representative at labor union Community, stated the new measures represented "an existential threat" to UK steel.

Unions and industry leaders called on Keir Starmer to start negotiations immediately with the European Union on country-specific duty-free quotas, noting that the United Kingdom was now the European Union's primary export market.

Broader Context

Industry leaders in the European Union have repeatedly cautioned for months that the European steel sector confronts being "wiped out" through the increased duties on exports to the US along with high energy costs and cheap Chinese competition.

The steel industry on both sides of the Channel is considered a essential sector, supplying basic materials in everything from building frameworks, renewable energy equipment and transport infrastructure to household appliances and kitchenware.

Adoption and Future Actions

The new measures must be agreed by EU nations and the EU legislature, with the European Commission president calling on national governments and European parliament members to move quickly in backing the proposal.

If the plan is ratified, the European Union will cut its current duty-free quota by 47% to 18.3 million tons a annually, a level previously recorded in 2013. It will apply a fifty percent tariff on foreign steel exceeding the limit and require countries shipping to the EU to state where the steel was melted and poured to avoid bypassing of the measures.

Exceptions and Global Partnerships

Norway, Iceland, and Liechtenstein will not be subject to tariff quotas or tariffs because of their strong economic ties in the EEA, the EU has confirmed.

In addition to these measures, the EU is pursuing a "steel partnership" with the US to ringfence their respective economies from overcapacity.

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