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EU officials have announced they will adopt the United States' steel tariffs, effectively doubling levies on foreign steel to 50% in a move described as "a survival risk" to the industry in the UK.

Major Challenge for UK Steel Industry

With 80% of British exports destined for the EU, this change represents the UK steel industry's biggest ever challenge, according to the lobby group speaking for the industry.

European Commission Proposals and Rules

Through its proposal submitted to the European parliament on Tuesday, the European Commission additionally suggested slashing the current allowance for tariff-exempt steel and requiring foreign suppliers to disclose the origin of steel production to prevent China sneaking products in through other countries.

EU steel sector faced potential collapse – we are protecting it so that investments can be made, decarbonise, and become competitive again.

Replacement of Existing System

These measures are intended to replace a quota system that has been in operation for the past seven years and which is set to expire in 2026 and is now considered not fit for purpose. Inaction could have been "catastrophic" for the sector, a European official stated.

Sector Response and Warnings

However, Gareth Stace, from the trade association British Steel, said EU doubling its tariffs would create "the most severe challenge the UK steel industry has encountered".

He called on the government to "acknowledge the urgent need to implement its own measures to defend" the British steel sector – which is still reeling from a twenty-five percent duty imposed by Trump earlier this year – from the threat of vast quantities of world steel redirected from American and EU markets.

This surge in foreign steel "could be terminal for many of our remaining steel companies.

Labor and Government Pressure

Alasdair McDiarmid, assistant general secretary at labor union Community, said the proposed changes posed "a survival risk" to British steel production.

Labor and business representatives urged the UK government to begin talks urgently with the EU on nation-specific duty-free quotas, noting that the UK was now the EU's No 1 trading partner.

Industry Background

Industry leaders in the European Union have repeatedly cautioned for months that the European steel sector confronts being "eliminated" through the new 50% tariffs on American market shipments along with high energy costs and low-cost Chinese imports.

The steel industry on in both the UK and EU is described as a foundational industry, supplying elemental components in products ranging from skyscraper structures, renewable energy equipment and transport infrastructure to household appliances and cutlery.

Implementation and Next Steps

These proposals require approval by EU nations and the European parliament, with the EU executive head calling on member states and European parliament members to move quickly in support of the proposal.

If the plan is ratified, the European Union will reduce its existing tariff-free allowance by forty-seven percent to 18.3m tonnes a annually, a volume previously recorded in 2013. It will impose a 50% tariff on foreign steel exceeding the limit and require countries exporting into the EU to state the production origin to prevent circumvention of the sanctions.

Exemptions and Global Partnerships

Norway, Iceland, and Liechtenstein will be exempt from tariff quotas or tariffs due to their close trading relationship in the EEA, the European Union has said.

In addition to these measures, the European Union is pursuing a "metals alliance" with the US to protect their respective economies from excess production.

The European Union needs to act now, and decisively, before operations cease in large parts of the EU steel industry and its value chains.