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EU officials revealed plans to mirror the United States' import duties on steel, effectively doubling taxes on foreign steel to 50% in a action condemned as "a survival risk" to the industry in the UK.

Major Challenge for UK Steel Industry

With eighty percent of British exports destined for the European Union, this change represents the UK steel industry's largest crisis, as stated by the lobby group representing the sector.

New EU Proposals and Regulations

Through its proposal presented to the European parliament on Tuesday, the EU executive also proposed cutting the current allowance for duty-free imports and requiring international producers to declare the origin of steel production to prevent Chinese producers diverting exports through other countries.

The European steel industry stood at the brink of failure – these measures safeguard it so that investments can be made, decarbonise, and regain competitiveness.

Replacement of Existing System

These measures are intended to replace a quota system that has been functioning for the last seven years and which is due to expire in 2026 and is now seen as outdated. To do nothing could have been "disastrous" for the sector, one EU official said.

Industry Reaction and Warnings

However, industry representatives, from the trade association UK Steel, said Brussels increasing duties would pose "the biggest crisis the British steel sector has encountered".

There were calls for the UK authorities to "recognise the urgent need to implement domestic protections to protect" the UK steel industry – which is affected by a twenty-five percent duty imposed by Trump earlier this year – from the threat of vast quantities of global steel diverted away from US and European markets.

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

Labor and Government Pressure

Union leaders, representative at labor union the industry union, stated the proposed changes represented "a survival risk" to British steel production.

Labor and business representatives called on the UK government to begin talks urgently with the EU on country-specific tariff exemptions, pointing out that the United Kingdom was now the EU's primary export market.

Broader Context

Industry leaders in the EU have also been warning for several months that their own industry faces being "eliminated" through the new 50% tariffs on American market shipments combined with high energy costs and cheap Chinese competition.

Steel on in both the UK and EU is described as a foundational industry, providing elemental components in products ranging from skyscraper structures, renewable energy equipment and railways to household appliances and cutlery.

Adoption and Future Actions

The new measures must be agreed by member states and the European parliament, with the EU executive head urging national governments and MEPs to act fast in backing the initiative.

If the plan is ratified, the EU will reduce its existing tariff-free allowance by 47% to 18.3m tonnes a year, a volume previously recorded in 2013. It will impose a fifty percent tariff on foreign steel beyond the quota and require countries exporting into the bloc to declare where the steel was melted and poured to avoid bypassing of the sanctions.

Exemptions and International Cooperation

Norway, Iceland, and Liechtenstein will be exempt from tariff quotas or duties because of their strong economic ties in the EEA, the EU has said.

Alongside the proposal, the European Union is pursuing a "metals alliance" with the US to ringfence their national industries from excess production.

EU must take immediate action, and firmly, before operations cease in large parts of the European steel sector and its value chains.