🔗 Share this article

The European Union declared they will match the United States' steel tariffs, effectively doubling taxes on foreign steel to 50% in a action described as "a survival risk" to the industry in the UK.

Unprecedented Crisis for UK Steel Exports

Given that 80% of British exports destined for the European Union, this policy shift poses the UK steel industry's largest crisis, according to the industry association speaking for the sector.

New EU Proposals and Rules

In its plan presented to the EU legislature this week, the European Commission additionally suggested cutting the existing quota for tariff-exempt steel and obliging foreign suppliers to disclose the origin of steel production to stop Chinese producers sneaking products in through other countries.

EU steel sector stood at the brink of failure – we are protecting 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 last seven years and which is due to expire in 2026 and is now seen as not fit for purpose. Inaction could have been "disastrous" for the industry, one EU official stated.

Industry Response and Warnings

Nevertheless, Gareth Stace, head of the industry body UK Steel, said Brussels doubling its tariffs would pose "the biggest crisis the British steel sector has encountered".

He called on the government to "recognise the critical necessity to implement domestic protections to defend" the UK steel industry – which is still reeling from a twenty-five percent tariff from Trump earlier this year – from the threat of millions of tonnes of global steel diverted away from US and European markets.

This surge in foreign steel "might prove fatal for many of our remaining steel companies.

Labor and Political Pressure

Union leaders, assistant general secretary at labor union the industry union, stated the new measures posed "an existential threat" to UK steel.

Labor and business representatives called on Keir Starmer to begin talks urgently with the European Union on country-specific tariff exemptions, noting that the United Kingdom was now the European Union's No 1 trading partner.

Industry Background

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

The steel industry on in both the UK and EU is considered a foundational industry, supplying basic materials in everything from building frameworks, renewable energy equipment and railways to dishwashers and kitchenware.

Adoption and Next Steps

These proposals require approval by EU nations and the EU legislature, with the European Commission president calling on member states and European parliament members to move quickly in backing the proposal.

If the plan is ratified, the EU will reduce its existing tariff-free allowance by 47% to 18.3 million tons a year, a volume previously recorded in 2013. It will apply a 50% tariff on imports beyond the quota and require countries exporting into the bloc to declare where the steel was melted and poured to prevent circumvention of the measures.

Exemptions and Global Partnerships

These European nations will not be subject to tariff quotas or duties due to their strong economic ties in the EEA, the European Union has confirmed.

Alongside the proposal, the European Union is pursuing a "metals alliance" with the United States to protect their respective economies from excess production.

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