🔗 Share this article

The European Union revealed they will mirror the United States' import duties on steel, effectively doubling levies on imports to 50% in a action condemned as "a survival risk" to the industry in Britain.

Unprecedented Crisis for British Steel Exports

With 80% of UK steel shipments destined for the European Union, this policy shift represents the UK steel industry's most severe challenge, according to the industry association representing the sector.

New EU Proposals and Rules

Through its proposal presented to the European parliament on Tuesday, the European Commission additionally suggested slashing the current allowance for tariff-exempt steel and requiring foreign suppliers to declare where the steel was melted and poured to stop China sneaking products in through third nations.

EU steel sector stood at the brink of failure – we are protecting it so that investments can be made, decarbonise, and regain competitiveness.

Replacement of Current Framework

The proposals are designed to replace a import framework that has been functioning for the last seven years and which is set to expire in 2026 and is now considered ineffective. Inaction could have been "disastrous" for the industry, a European official stated.

Sector Reaction and Warnings

However, industry representatives, head of the industry body UK Steel, said EU doubling its tariffs would create "the biggest crisis the British steel sector has ever faced".

There were calls for the UK authorities to "acknowledge the critical necessity to implement its own measures to protect" the British steel sector – which is still reeling from a twenty-five percent duty from the US recently – from the risk of millions of tonnes of world steel redirected 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 Community, stated the new measures represented "a survival risk" to UK steel.

Labor and business representatives called on Keir Starmer to start negotiations immediately with the European Union on country-specific duty-free quotas, pointing out that the United Kingdom was now the European Union's No 1 trading partner.

Industry Background

Sector representatives in the EU have repeatedly cautioned for several months that their own industry confronts being "eliminated" through the increased duties on exports to the US along with high energy costs and cheap Chinese competition.

Steel on both sides of the Channel is described as a essential sector, supplying elemental components in everything from skyscraper structures, wind turbines and transport infrastructure to household appliances and cutlery.

Implementation and Future Actions

The new measures require approval by member states and the EU legislature, with the European Commission president urging national governments and European parliament members to move quickly in support of the proposal.

If the plan is ratified, the European Union will reduce its current duty-free quota by 47% to 18.3m tonnes a annually, a volume previously recorded in 2013. It will apply a fifty percent duty on imports beyond the quota and require countries shipping to the EU to state the production origin to prevent circumvention of the measures.

Exceptions and International Cooperation

Norway, Iceland, and Liechtenstein will not be subject to import limits or tariffs because of their close trading relationship in the European Economic Area, the EU has said.

Alongside the proposal, the European Union is pursuing a "steel partnership" with the United States to protect their respective economies from overcapacity.

EU must take immediate action, and firmly, prior to operations cease in significant portions of the EU steel industry and its value chains.