🔗 Share this article

EU officials declared plans to mirror the United States' import duties on steel, increasing to double levies on imports to fifty percent in a decision described as "a critical danger" to the industry in Britain.

Unprecedented Crisis for British Steel Industry

Given that 80% of UK steel shipments going to the European Union, this policy shift creates the UK steel industry's largest crisis, as stated by the industry association speaking for the industry.

European Commission Proposals and Rules

In its plan submitted to the EU legislature this week, the EU executive also proposed slashing the current allowance for tariff-exempt steel and requiring international producers to state the origin of steel production to prevent China sneaking products in through third nations.

EU steel sector stood at the brink of failure – 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quota system that has been in operation for the last seven years and which is due to expire in 2026 and is now seen as outdated. Inaction could have been "catastrophic" for the industry, a European official said.

Industry Reaction and Concerns

However, industry representatives, from the industry body British Steel, said Brussels increasing duties would create "the biggest crisis the British steel sector has ever faced".

There were calls for the government to "recognise the urgent need to put in place its own measures to defend" the UK steel industry – which is affected by a twenty-five percent duty from the US earlier this year – from the risk of millions of tonnes of world steel redirected from US and European markets.

This surge in foreign steel "might prove terminal for many of our remaining steel companies.

Union and Government Pressure

Union leaders, representative at steelworkers' union the industry union, stated the proposed changes represented "a survival risk" to UK steel.

Unions and industry leaders urged Keir Starmer to start negotiations urgently with the European Union on nation-specific duty-free quotas, pointing out that the United Kingdom was now the European Union's primary export market.

Industry Background

Sector representatives in the European Union have also been warning for months that their own industry faces being "wiped out" through the increased duties on exports to the US combined with high energy costs and cheap Chinese competition.

Steel on both sides of the Channel is described as a foundational industry, supplying elemental components in products ranging from building frameworks, wind turbines and railways to household appliances and kitchenware.

Adoption and Future Actions

The new measures require approval by EU nations and the EU legislature, with the European Commission president calling on national governments and European parliament members to act fast in support of the initiative.

Should approval be granted, the European Union will cut its current duty-free quota by forty-seven percent to 18.3 million tons a annually, a level previously recorded in 2013. It will apply a fifty percent duty on foreign steel beyond the quota and require nations exporting into the EU to declare the production origin to prevent circumvention of the sanctions.

Exemptions and International Cooperation

These European nations will not be subject to tariff quotas or duties because of their strong economic ties in the EEA, the EU has said.

In addition to these measures, the European Union is seeking a "steel partnership" with the US to protect their respective economies from excess production.

EU must take immediate action, and decisively, prior to all lights go out in large parts of the EU steel industry and its supply networks.