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EU officials revealed they will adopt Donald Trump's import duties on steel, effectively doubling taxes on foreign steel to fifty percent in a decision condemned as "an existential threat" to the sector in Britain.

Unprecedented Crisis for British Steel Industry

Given that eighty percent of UK steel shipments destined for the European Union, this policy shift represents the UK steel industry's most severe crisis, according to the lobby group speaking for the sector.

New EU Measures and Regulations

Through its proposal submitted to the EU legislature this week, the European Commission also proposed cutting the existing quota for duty-free imports and requiring foreign suppliers to state the origin of steel production to prevent Chinese producers diverting exports through other countries.

EU steel sector was on the verge of collapse – these measures safeguard it so that investments can be made, reduce emissions, and regain competitiveness.

Overhaul of Current Framework

The proposals are intended to replace a quota system that has been functioning for the last seven years and which is set to expire in 2026 and is now considered ineffective. Inaction could have been "catastrophic" for the industry, a European official said.

Industry Response and Warnings

However, Gareth Stace, head of the trade association British Steel, stated Brussels increasing duties would pose "the biggest crisis the British steel sector has ever faced".

There were calls for the government to "recognise the urgent need to put in place its own measures to protect" the UK steel industry – which is affected by a 25% tariff from the US recently – from the threat of vast quantities of global steel diverted away from American and EU markets.

This surge in foreign steel "could be terminal for numerous steel companies.

Union and Government Calls

Union leaders, representative at steelworkers' union Community, stated the new measures represented "a survival risk" to UK steel.

Labor and business representatives urged the UK government to begin talks immediately with the EU on country-specific tariff exemptions, noting that the UK was now the EU's No 1 trading partner.

Broader Context

Sector representatives in the European Union have also been warning for months that the European steel sector confronts being "eliminated" through the new 50% tariffs on American market shipments combined with rising energy prices and low-cost Chinese imports.

Steel on both sides of the Channel is described as a essential sector, providing basic materials in everything from building frameworks, renewable energy equipment and railways to household appliances and kitchenware.

Implementation and Next Steps

The new measures require approval by member states and the EU legislature, with the European Commission president urging national governments and MEPs to act fast in backing the initiative.

Should approval be granted, the EU will reduce its current duty-free quota by 47% to 18.3 million tons a annually, a level last seen in 2013. It will apply a 50% duty on imports exceeding the limit and oblige nations shipping to the bloc to state where the steel was melted and poured to prevent circumvention of the sanctions.

Exceptions and Global Partnerships

These European nations will be exempt from tariff quotas or tariffs due to their strong economic ties in the EEA, the EU has said.

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

EU must take immediate action, and firmly, prior to all lights go out in large parts of the EU steel industry and its value chains.