🔗 Share this article European Union's Proposal to Match US Steel Tariffs Poses 'Existential Threat' to British Steel Industry EU officials declared plans to match the United States' import duties on steel, effectively doubling levies on imports to fifty percent in a action described as "an existential threat" to the industry in Britain. Major Challenge for UK Steel Industry Given that 80% of UK steel shipments destined for the European Union, this change poses the UK steel industry's largest crisis, as stated by the lobby group speaking for the industry. New EU Measures and Regulations Through its proposal submitted to the EU legislature this week, the EU executive also proposed reducing the current allowance for duty-free imports and obliging international producers to declare the origin of steel production to prevent China diverting exports through third nations. The European steel industry was on the verge of collapse – we are protecting it so that it can invest, decarbonise, and become competitive again. Overhaul of Existing System The proposals are designed to supersede a import framework that has been functioning for the past seven years and which is set to expire in 2026 and is now seen as ineffective. To do nothing could have been "catastrophic" for the sector, one EU official stated. Sector Response and Warnings Nevertheless, Gareth Stace, head of the industry body UK Steel, stated EU doubling its tariffs would create "the biggest crisis the UK steel industry has encountered". He called on the government to "recognise the critical necessity to put in place its own measures to defend" the British steel sector – which is affected by a 25% tariff from the US recently – from the risk of millions of tonnes of global steel diverted away from American and EU markets. This flood of imports "could be fatal for numerous steel companies. Labor and Government Calls Alasdair McDiarmid, assistant general secretary at labor union the industry union, said the new measures posed "an existential threat" to UK steel. Unions and industry leaders urged the UK government to start negotiations urgently with the European Union on nation-specific duty-free quotas, pointing out that the UK was now the European Union's No 1 trading partner. Broader Context Industry leaders in the EU have also been warning for months that the European steel sector faces being "wiped out" through the new 50% tariffs on American market shipments along with high energy costs and low-cost Chinese imports. The steel industry on both sides of the Channel is described as a foundational industry, providing basic materials in everything from building frameworks, wind turbines and transport infrastructure to dishwashers and kitchenware. Adoption and Next Steps The new measures must be agreed by member states and the European parliament, with the EU executive head urging member states and European parliament members to move quickly in backing the proposal. Should approval be granted, the European Union will cut its existing tariff-free allowance by forty-seven percent to 18.3m tonnes a annually, a level previously recorded in 2013. It will apply a 50% tariff on foreign steel beyond the quota and oblige nations shipping to the EU to state where the steel was melted and poured to prevent circumvention of the measures. Exemptions and Global Partnerships Norway, Iceland, and Liechtenstein will be exempt from import limits or tariffs because of their close trading relationship in the European Economic Area, the European Union has said. Alongside the proposal, the European Union is seeking a "metals alliance" with the United States to ringfence their national industries from overcapacity. The European Union must take immediate action, and decisively, before operations cease in significant portions of the EU steel industry and its value chains.