🔗 Share this article EU's Plan to Align With Trump's Steel Tariffs Poses 'Survival Risk' to British Steel Industry The European Union have announced plans to adopt the United States' steel tariffs, increasing to double levies on imports to fifty percent in a decision described as "an existential threat" to the sector in the UK. Unprecedented Crisis for British Steel Industry With 80% of British exports going to the European Union, this change creates the UK steel industry's most severe crisis, according to the industry association speaking for the sector. European Commission Measures and Regulations Through its proposal presented to the European parliament this week, the European Commission also proposed reducing the current allowance for tariff-exempt steel and requiring foreign suppliers to state where the steel was melted and poured to stop China sneaking products in through third nations. The European steel industry was on the verge of collapse – these measures safeguard it so that investments can be made, reduce emissions, and become competitive again. Overhaul of Current Framework These measures are designed to replace a import framework that has been in operation for the past seven years and which is due to expire in 2026 and is now seen as not fit for purpose. Inaction could have been "catastrophic" for the industry, one EU official stated. Industry Reaction and Warnings Nevertheless, industry representatives, from the trade association British Steel, said Brussels doubling its tariffs would create "the biggest crisis the UK steel industry has ever faced". He called on the UK authorities to "recognise the urgent need to implement domestic protections to protect" the British steel sector – which is still reeling from a 25% tariff imposed by Trump earlier this year – from the threat of vast quantities of global steel diverted away from US and European markets. This flood of imports "could be terminal for many of our remaining steel companies. Labor and Government Calls Union leaders, representative at labor union the industry union, said the proposed changes posed "an existential threat" to British steel production. Unions and industry leaders called on the UK government to start negotiations immediately with the European Union on country-specific tariff exemptions, noting that the United Kingdom was now the EU's No 1 trading partner. Broader Context Industry leaders in the European Union have also been warning for several months that the European steel sector confronts being "eliminated" through the increased duties 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, supplying elemental components in everything from building frameworks, wind turbines and transport infrastructure to household appliances and kitchenware. Implementation and Future Actions These proposals require approval by member states and the European parliament, with the EU executive head urging member states and European parliament members to act fast in backing the initiative. Should approval be granted, the EU will reduce its existing tariff-free allowance by 47% to 18.3m tonnes a annually, a level last seen in 2013. It will apply a fifty percent duty on imports beyond the quota and oblige nations shipping to the EU to state the production origin to avoid bypassing of the sanctions. Exceptions and International Cooperation Norway, Iceland, and Liechtenstein will not be subject to import limits or duties due to their close trading relationship in the European Economic Area, the European Union has said. Alongside the proposal, the European Union is seeking a "metals alliance" with the US to ringfence their respective economies from excess production. The European Union must take immediate action, and firmly, before operations cease in large parts of the European steel sector and its supply networks.