EU's Plan to Align With Trump's Steel Tariffs Poses 'Survival Risk' to UK's Steel Sector

EU officials have announced they will adopt Donald Trump's steel tariffs, effectively doubling levies on imports to fifty percent in a decision described as "a survival risk" to the sector in the UK.

Major Challenge for UK Steel Exports

With eighty percent of British exports destined for the EU, this policy shift creates the UK steel industry's biggest ever challenge, as stated by the industry association speaking for the industry.

European Commission Proposals and Rules

In its plan submitted to the European parliament this week, the EU executive additionally suggested cutting the existing quota for tariff-exempt steel and requiring international producers to state the origin of steel production to stop Chinese producers sneaking products in through other countries.

The European steel industry faced potential collapse – we are protecting it so that investments can be made, decarbonise, and become competitive again.

Overhaul of Existing System

These measures are intended to replace a import framework that has been functioning for the past seven years and which is due to expire in 2026 and is now considered ineffective. To do nothing could have been "disastrous" for the industry, one EU official said.

Industry Response and Warnings

However, industry representatives, head of the industry body UK Steel, said Brussels increasing duties would pose "the biggest crisis the British steel sector has encountered".

He called on the UK authorities to "acknowledge the critical necessity to implement domestic protections to protect" the British steel sector – which is still reeling from a 25% tariff imposed by Trump 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 many of our remaining steel companies.

Union and Political Pressure

Alasdair McDiarmid, assistant general secretary at labor union the industry union, said the proposed changes represented "an existential threat" to UK steel.

Unions and industry leaders called on Keir Starmer to begin talks urgently with the European Union on country-specific tariff exemptions, noting that the UK was now the EU's primary export market.

Industry Background

Industry leaders in the European Union have also been warning for months that the European steel sector confronts being "wiped out" through the increased duties on American market shipments combined with rising energy prices and low-cost Chinese imports.

The steel industry on both sides of the Channel is described as a essential sector, supplying basic materials in everything from skyscraper structures, renewable energy equipment and railways to dishwashers and kitchenware.

Implementation and Next Steps

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

If the plan is ratified, the European Union will reduce its existing tariff-free allowance by 47% to 18.3 million tons a year, a level previously recorded in 2013. It will impose a 50% tariff on imports exceeding the limit and require nations exporting into the EU to declare the production origin 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 strong economic ties in the European Economic Area, the European Union has confirmed.

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

The European Union must take immediate action, and firmly, prior to all lights go out in significant portions of the European steel sector and its value chains.