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EU officials declared they will mirror Donald Trump's steel tariffs, effectively doubling taxes on imports to 50% in a move described as "a survival risk" to the sector in the UK.

Unprecedented Crisis for British Steel Industry

Given that 80% of UK steel shipments going to the European Union, this change creates the UK steel industry's most severe crisis, according to the industry association speaking for the industry.

European Commission Measures and Rules

In its plan submitted to the European parliament on Tuesday, the European Commission also proposed slashing the existing quota for tariff-exempt steel and requiring foreign suppliers to state the origin of steel production to prevent China sneaking products in through other countries.

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

Overhaul of Existing System

These measures are designed to replace a quota system that has been functioning for the past seven years and which is due to expire in 2026 and is now considered ineffective. To do nothing could have been "catastrophic" for the sector, a European official said.

Sector Reaction and Concerns

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

He called on the UK authorities to "recognise the urgent need to put in place its own measures to defend" the UK steel industry – which is still reeling from a twenty-five percent duty imposed by the US earlier this year – from the threat of vast quantities of global steel diverted away from US and European markets.

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

Labor and Government Calls

Alasdair McDiarmid, assistant general secretary at labor union Community, stated the new measures posed "an existential threat" to UK steel.

Labor and business representatives urged the UK government to start negotiations immediately with the European Union on nation-specific tariff exemptions, pointing out that the UK was now the EU's No 1 export market.

Industry Background

Industry leaders in the EU have also been warning for several months that the European steel sector faces being "eliminated" through the increased duties on American market shipments combined with high energy costs and low-cost Chinese imports.

Steel on both sides of the Channel is described as a essential sector, supplying basic materials in everything from building frameworks, wind turbines and railways to dishwashers and cutlery.

Implementation and Next Steps

The new measures must be agreed by EU nations and the EU legislature, with the European Commission president urging national governments and MEPs to act fast in backing the initiative.

If the plan is ratified, the European Union will reduce its existing tariff-free allowance by forty-seven percent to 18.3m tonnes a year, a level last seen in 2013. It will apply a 50% duty on foreign steel beyond the quota and require nations shipping to the EU to state the production origin to avoid bypassing of the measures.

Exceptions and Global Partnerships

These European nations will be exempt from import limits or duties due to their strong economic ties in the EEA, the EU has confirmed.

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

EU must take immediate action, and firmly, prior to operations cease in significant portions of the European steel sector and its value chains.