🔗 Share this article European Union's Proposal to Align With Trump's Steel Tariffs Poses 'Survival Risk' to British Steel Sector The European Union have announced plans to adopt Donald Trump's steel tariffs, effectively doubling taxes on imports to 50% in a action condemned as "a critical danger" to the industry in the UK. Unprecedented Crisis for UK Steel Industry Given that eighty percent of UK steel shipments destined for the EU, this policy shift poses the UK steel industry's largest challenge, as stated by the lobby group speaking for the industry. European Commission Proposals and Regulations In its plan presented to the European parliament this week, the European Commission also proposed cutting the existing quota for tariff-exempt steel and requiring foreign suppliers to declare where the steel was melted and poured to stop Chinese producers 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. Replacement of Existing System The proposals are intended to replace a quota system that has been functioning for the past seven years and which is set to expire in 2026 and is now considered ineffective. To do nothing could have been "fatal" for the industry, a European official said. Sector Response and Warnings Nevertheless, Gareth Stace, head of the industry body UK Steel, stated Brussels increasing duties would pose "the biggest crisis the British steel sector has encountered". There were calls for the government to "acknowledge the urgent need to implement its own measures to defend" the British steel sector – which is affected by a 25% tariff imposed by Trump recently – from the threat of vast quantities of world steel diverted away from American and EU markets. This flood of imports "might prove terminal for numerous steel companies. Labor and Government Pressure Alasdair McDiarmid, assistant general secretary at labor union the industry union, stated the new measures posed "a survival risk" to British steel production. Unions and industry leaders called on the UK government to start negotiations immediately with the EU on nation-specific tariff exemptions, pointing out that the UK was now the EU's No 1 export market. Industry Background Sector representatives in the EU have also been warning for months that the European steel sector confronts being "wiped out" through the increased duties on American market shipments combined 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 skyscraper structures, renewable energy equipment and transport infrastructure to dishwashers and kitchenware. Implementation and Future Actions These proposals require approval by EU nations and the EU legislature, with the European Commission president urging member states and MEPs to move quickly in backing the initiative. Should approval be granted, the European Union will cut its current duty-free quota by 47% to 18.3m tonnes a year, a volume previously recorded in 2013. It will apply a 50% tariff on foreign steel exceeding the limit and oblige countries exporting into the bloc to declare the production origin to avoid bypassing of the measures. Exemptions and International Cooperation Norway, Iceland, and Liechtenstein will be exempt from import limits or duties because of their close trading relationship in the EEA, the EU has confirmed. Alongside the proposal, the European Union is pursuing a "metals alliance" with the US to ringfence their respective economies from overcapacity. The European Union must take immediate action, and firmly, before all lights go out in significant portions of the European steel sector and its value chains.