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The European Union revealed they will adopt Donald Trump's import duties on steel, increasing to double taxes on foreign steel to 50% in a move condemned as "a survival risk" to the industry in Britain.

Unprecedented Crisis for British Steel Industry

With eighty percent of UK steel shipments destined for the European Union, this change poses the UK steel industry's most severe challenge, according to the industry association speaking for the sector.

European Commission Measures and Rules

Through its proposal presented to the European parliament on Tuesday, the European Commission also proposed cutting the current allowance for tariff-exempt steel and obliging international producers to state the origin of steel production to stop China diverting exports through other countries.

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

Replacement of Existing System

These measures are intended to supersede a import framework that has been in operation 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 "disastrous" for the sector, a European official said.

Industry Reaction and Concerns

Nevertheless, industry representatives, head of the industry body British Steel, stated EU increasing duties would pose "the biggest crisis the UK steel industry has ever faced".

There were calls for the government to "recognise the critical necessity to implement domestic protections to protect" the UK steel industry – which is still reeling from a 25% tariff imposed by the US earlier this year – from the threat of millions of tonnes of global steel redirected from US and European markets.

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

Union and Political Pressure

Union leaders, representative at labor union Community, said the new measures represented "a survival risk" to British steel production.

Labor and business representatives called on Keir Starmer to begin talks urgently with the EU on nation-specific tariff exemptions, noting that the United Kingdom was now the European Union's No 1 trading partner.

Industry Background

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

Steel on in both the UK and EU is considered a essential sector, providing basic materials in everything from building frameworks, renewable energy equipment and transport infrastructure to dishwashers and kitchenware.

Implementation and Next Steps

These proposals must be agreed by member states and the EU legislature, with the EU executive head urging member states and MEPs to act fast in support of the initiative.

Should approval be granted, the European Union will cut its existing tariff-free allowance by 47% to 18.3 million tons a year, a level previously recorded in 2013. It will apply a 50% duty on foreign steel exceeding the limit and oblige countries shipping to the EU to state where the steel was melted and poured to prevent circumvention of the measures.

Exemptions and Global Partnerships

These European nations 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.

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

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