🔗 Share this article European Union's Proposal to Align With US Steel Tariffs Spurs 'Existential Threat' to British Steel Sector The European Union revealed they will mirror the United States' import duties on steel, increasing to double levies on imports to 50% in a move described as "a critical danger" to the industry in Britain. Unprecedented Crisis for UK Steel Exports With 80% of UK steel shipments destined for the EU, this policy shift poses the British steel sector's most severe crisis, as stated by the industry association representing the sector. New EU Proposals and Rules Through its proposal submitted to the European parliament on Tuesday, the European Commission additionally suggested cutting the existing quota for tariff-exempt steel and requiring international producers to state where the steel was melted and poured to prevent 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, decarbonise, and become competitive again. Overhaul 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system that has been in operation for the last seven years and which is due to expire in 2026 and is now considered outdated.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 "fatal" for the industry, a European official said. Industry Response and Concerns However, industry representatives, from the trade association British Steel, stated Brussels doubling its tariffs would pose "the biggest crisis the UK steel industry has encountered". There were calls for the government to "recognise the urgent need to put in place domestic protections to protect" the British steel sector – which is still reeling from a twenty-five percent tariff from Trump recently – from the risk of millions of tonnes of global steel diverted away from American and EU markets. This surge in foreign steel "could be fatal for numerous steel companies. Labor and Political Pressure Union leaders, representative at labor union Community, said the proposed changes posed "an existential threat" to UK steel. Labor and business representatives called on the UK government to start negotiations immediately with the European Union on nation-specific tariff exemptions, pointing out that the United Kingdom was now the European Union's primary trading partner. Broader Context Sector representatives in the European Union have also been warning for months that their own industry faces being "eliminated" through the new 50% tariffs on American market shipments along with rising energy prices and low-cost Chinese imports. The steel industry on both sides of the Channel is considered a foundational industry, supplying elemental components in products ranging from building frameworks, wind turbines and transport infrastructure to dishwashers and cutlery. Adoption and Future Actions The new measures must be agreed by EU nations and the EU legislature, with the EU executive head calling on member states and European parliament members to move quickly in backing the initiative. Should approval be granted, the EU will cut its existing tariff-free allowance by 47% to 18.3m tonnes a year, a level last seen in 2013. It will apply a 50% duty on imports beyond the quota and require nations shipping to the EU to state the production origin to avoid bypassing of the measures. 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. In addition to these measures, the EU is pursuing a "steel partnership" with the US to protect their national industries from overcapacity. The European Union must take immediate action, and firmly, before all lights go out in significant portions of the European steel sector and its value chains.