🔗 Share this article European Union's Plan to Match Trump's Steel Tariffs Spurs 'Survival Risk' to UK's Steel Sector EU officials revealed plans to match the United States' steel tariffs, effectively doubling taxes on foreign steel to 50% in a move condemned as "a survival risk" to the sector in the UK. Major Challenge for British Steel Exports Given that eighty percent of British exports destined for the EU, this change represents the British steel sector's most severe challenge, as stated by the industry association speaking for the industry. New EU Proposals and Rules In its plan submitted to the EU legislature this week, the EU executive additionally suggested cutting the existing quota for duty-free imports and obliging foreign suppliers to declare where the steel was melted and poured to stop China sneaking products in through other countries. The European steel industry faced potential collapse – these measures safeguard it so that investments can be made, decarbonise, and regain competitiveness. Overhaul of Existing System The proposals are designed to supersede a quota system 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. To do nothing could have been "disastrous" for the industry, one EU official stated. Industry Reaction and Concerns Nevertheless, industry representatives, head of the trade association UK Steel, said EU increasing duties would create "the most severe challenge the British steel sector has encountered". There were calls for the UK authorities to "acknowledge the urgent need to put in place domestic protections to protect" the British steel sector – which is affected by a twenty-five percent tariff from Trump recently – from the risk of millions of tonnes of world steel diverted away from US and European markets. This surge in foreign steel "could be terminal for numerous steel companies. Union and Political Pressure Alasdair McDiarmid, assistant general secretary at labor union the industry union, said the proposed changes posed "an existential threat" to British steel production. Unions and industry leaders urged the UK government to begin talks urgently with the European Union on country-specific duty-free quotas, noting that the UK was now the European Union's primary trading partner. Industry Background Industry leaders in the EU have also been warning for several 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 in both the UK and EU is considered a foundational industry, supplying basic materials in everything from building frameworks, renewable energy equipment and transport infrastructure to dishwashers and cutlery. Implementation and Future Actions The new measures must be agreed by member states and the European parliament, with the European Commission president urging national governments and European parliament members to move quickly in support of the initiative. If the plan is ratified, the European Union will reduce its current duty-free quota by 47% to 18.3 million tons a year, a volume previously recorded in 2013. It will apply a fifty percent duty on imports exceeding the limit and oblige nations exporting into the bloc to declare the production origin to avoid bypassing of the measures. Exceptions and Global Partnerships Norway, Iceland, and Liechtenstein will not be subject to import limits or tariffs because of their strong economic ties in the EEA, the European Union has confirmed. Alongside the proposal, the European Union is seeking a "steel partnership" with the United States to protect their national industries from overcapacity. EU needs to act now, and decisively, prior to operations cease in large parts of the EU steel industry and its value chains.