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The European Union declared plans to adopt Donald Trump's import duties on steel, increasing to double taxes on imports to fifty percent in a decision condemned as "an existential threat" to the industry in Britain.

Major Challenge for British Steel Industry

With eighty percent of UK steel shipments going to the EU, this change represents the UK steel industry's largest crisis, according to the lobby group representing the industry.

European Commission Proposals and Rules

Through its proposal submitted to the European parliament on Tuesday, the European Commission also proposed slashing the current allowance for duty-free imports and requiring international producers to state where the steel was melted and poured to prevent China sneaking products in through other countries.

The European steel industry faced potential collapse – we are protecting it so that it can invest, reduce emissions, and regain competitiveness.

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 ineffective. To do nothing could have been "disastrous" for the sector, one EU official stated.

Sector Reaction and Concerns

Nevertheless, industry representatives, head of the industry body British Steel, stated Brussels increasing duties would create "the biggest crisis the UK steel industry has ever faced".

There were calls for the government to "acknowledge the critical necessity to put in place its own measures to protect" the UK steel industry – which is still reeling from a twenty-five percent duty imposed by Trump recently – 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.

Union and Political Pressure

Alasdair McDiarmid, assistant general secretary at steelworkers' union Community, said the proposed changes represented "an existential threat" to British steel production.

Unions and industry leaders urged the UK government to begin talks immediately with the EU on country-specific duty-free quotas, pointing out that the UK was now the European Union's No 1 export market.

Industry Background

Industry leaders in the EU have also been warning for several months that their own industry faces being "wiped out" through the increased duties on American market shipments along with high energy costs and low-cost Chinese imports.

The steel industry on in both the UK and EU is considered a essential sector, providing basic materials in everything from building frameworks, wind turbines and transport infrastructure to household appliances and cutlery.

Implementation and Next Steps

These proposals require approval by member states and the European parliament, with the EU executive head urging member states and MEPs to act fast in support of the proposal.

If the plan is ratified, the EU will cut its current duty-free quota by 47% to 18.3m tonnes a year, a volume previously recorded in 2013. It will impose a 50% tariff on imports exceeding the limit and require nations exporting into the bloc to state the production origin to prevent circumvention of the measures.

Exemptions and International Cooperation

Norway, Iceland, and Liechtenstein will not be subject to tariff quotas or tariffs because of their strong economic ties in the EEA, the EU has said.

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

EU needs to act now, and decisively, prior to all lights go out in large parts of the EU steel industry and its value chains.