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EU officials declared plans to adopt Donald Trump's import duties on steel, increasing to double taxes on foreign steel to fifty percent in a action described as "an existential threat" to the industry in the UK.

Major Challenge for British Steel Industry

With 80% of British exports going to the EU, this policy shift creates the British steel sector's most severe crisis, as stated by the lobby group speaking for the industry.

European Commission Proposals and Rules

In its plan submitted to the EU legislature on Tuesday, the European Commission also proposed cutting the current allowance for tariff-exempt steel and requiring international producers to declare where the steel was melted and poured to stop China sneaking products in through other countries.

EU steel sector stood at the brink of failure – these measures safeguard it so that it can invest, decarbonise, and become competitive again.

Overhaul of Existing System

The proposals are intended to supersede a quota system that has been functioning for the past seven years and which is set to expire in 2026 and is now seen as outdated. To do nothing could have been "catastrophic" for the sector, one EU official stated.

Sector Response and Warnings

However, industry representatives, head of the industry body British Steel, said EU increasing duties would create "the biggest crisis the UK steel industry has ever faced".

There were calls for the government to "acknowledge the critical necessity to put in place its own measures to protect" the British steel sector – which is affected by a 25% duty from the US earlier this year – from the risk of millions of tonnes of global steel redirected from US and European markets.

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

Union and Political Calls

Union leaders, representative at steelworkers' union Community, stated the new measures posed "an existential threat" to UK steel.

Labor and business representatives called on Keir Starmer to start negotiations immediately with the EU on nation-specific tariff exemptions, noting that the UK was now the European Union's No 1 export market.

Broader Context

Industry leaders in the European Union have repeatedly cautioned for months that their own industry confronts being "eliminated" through the new 50% tariffs on exports to the US combined with rising energy prices and cheap Chinese competition.

The steel industry on both sides of the Channel is described as a essential sector, providing basic materials in products ranging from skyscraper structures, wind turbines and railways to dishwashers and cutlery.

Adoption and Future Actions

These proposals require approval by EU nations and the European parliament, with the EU executive head calling on member states and MEPs to act fast in backing the initiative.

Should approval be granted, the EU will reduce its current duty-free quota by forty-seven percent to 18.3 million tons a year, a level last seen in 2013. It will impose a 50% tariff on foreign steel exceeding the limit and require countries shipping to the bloc to state where the steel was melted and poured to avoid bypassing of the measures.

Exceptions and International Cooperation

Norway, Iceland, and Liechtenstein will be exempt from import limits or duties due to their strong economic ties in the EEA, the EU has said.

In addition to these measures, the EU is seeking a "metals alliance" with the US to protect their national industries from excess production.

EU needs to act now, and decisively, before all lights go out in large parts of the European steel sector and its supply networks.