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EU officials have announced plans to mirror the United States' import duties on steel, effectively doubling taxes on imports to fifty percent in a decision condemned as "a critical danger" to the industry in Britain.

Unprecedented Crisis for British Steel Exports

With 80% of British exports destined for the EU, this change poses the British steel sector's largest crisis, according to the industry association speaking for the industry.

European Commission Proposals and Regulations

Through its proposal submitted to the EU legislature this week, the European Commission also proposed cutting the current allowance for duty-free imports and obliging foreign suppliers to disclose where the steel was melted and poured to prevent China diverting exports through other countries.

The European steel industry faced potential collapse – these measures safeguard it so that investments can be made, reduce emissions, and regain competitiveness.

Overhaul of Existing System

The proposals are designed to supersede a quota system that has been in operation for the last seven years and which is set to expire in 2026 and is now considered ineffective. To do nothing could have been "disastrous" for the industry, a European official said.

Sector Reaction and Concerns

However, Gareth Stace, head of the industry body UK Steel, said EU increasing duties would pose "the biggest crisis the UK steel industry has encountered".

There were calls for the UK authorities to "acknowledge the critical necessity to put in place domestic protections to protect" the UK steel industry – which is affected by a 25% duty from Trump recently – from the risk of vast quantities of global steel redirected from US and European markets.

This flood of imports "might prove fatal for numerous steel companies.

Labor and Government Calls

Union leaders, assistant general secretary at steelworkers' union Community, said the proposed changes posed "an existential threat" to UK steel.

Unions and industry leaders urged Keir Starmer to begin talks immediately with the European Union on country-specific duty-free quotas, noting that the United Kingdom was now the EU's No 1 export market.

Broader Context

Sector representatives in the European Union have also been warning for months that their own industry faces being "eliminated" through the increased duties on exports to the US combined with high energy costs and cheap Chinese competition.

The steel industry on in both the UK and EU is considered a foundational industry, providing basic materials in everything from skyscraper structures, wind turbines and railways to household appliances and kitchenware.

Adoption and Next Steps

These proposals must be agreed by member states and the EU legislature, with the European Commission president urging member states and European parliament members to move quickly in support of the proposal.

If the plan is ratified, the European Union will reduce its existing tariff-free allowance by 47% to 18.3 million tons a annually, a volume last seen in 2013. It will apply a fifty percent duty on foreign steel exceeding the limit and oblige countries exporting into the bloc to state the production origin to prevent circumvention of the measures.

Exceptions and Global Partnerships

These European nations will not be subject to import limits or duties because of their close trading relationship in the European Economic Area, the European Union has confirmed.

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

The European Union needs to act now, and firmly, before all lights go out in significant portions of the EU steel industry and its value chains.