🔗 Share this article European Union's Proposal to Align With Trump's Steel Tariffs Poses 'Survival Risk' to British Steel Industry The European Union declared they will mirror the United States' steel tariffs, effectively doubling taxes on imports to fifty percent in a move condemned as "an existential threat" to the sector in Britain. Unprecedented Crisis for British Steel Industry Given that 80% of British exports going to the European Union, this policy shift represents the British steel sector's largest challenge, as stated by the lobby group representing the sector. European Commission Proposals and Regulations Through its proposal submitted to the European parliament on Tuesday, the European Commission additionally suggested slashing the existing quota for tariff-exempt steel and requiring foreign suppliers to disclose where the steel was melted and poured to stop Chinese producers sneaking products in through other countries. EU steel sector was on the verge of collapse – we are protecting it so that it can invest, reduce emissions, and become competitive again. Replacement of Current Framework The proposals are intended 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 considered not fit for purpose. To do nothing could have been "fatal" for the industry, one EU official said. Sector Response and Warnings Nevertheless, industry representatives, from the industry body British Steel, stated EU increasing duties would create "the most severe challenge the British steel sector has ever faced". He called on the UK authorities to "acknowledge the urgent need to implement domestic protections to protect" the UK steel industry – which is still reeling from a 25% duty from the US recently – from the risk of vast quantities of global steel redirected from US and European markets. This flood of imports "might prove terminal for many of our remaining steel companies. Union and Political Calls Alasdair McDiarmid, assistant general secretary at labor union Community, said the new measures represented "an existential threat" to British steel production. Labor and business representatives urged the UK government to start negotiations urgently with the EU on country-specific tariff exemptions, pointing out that the United Kingdom was now the European Union's No 1 trading partner. Industry Background Industry leaders in the European Union have also been warning for months that the European steel sector faces being "wiped out" through the increased duties on American market shipments combined with high energy costs and low-cost Chinese imports. Steel on both sides of the Channel is considered a essential sector, providing elemental components in products ranging from skyscraper structures, renewable energy equipment and railways to dishwashers and cutlery. Adoption and Next Steps These proposals must be agreed by EU nations and the European parliament, with the EU executive head calling on member states and European parliament members to move quickly in support of the proposal. Should approval be granted, the European Union will reduce its existing tariff-free allowance by forty-seven percent to 18.3 million tons a annually, a level previously recorded in 2013. It will impose a fifty percent tariff on imports beyond the quota and require countries shipping to the bloc to state the production origin to prevent circumvention of the sanctions. Exemptions and Global Partnerships These European nations will not be subject to tariff quotas or tariffs because of their strong economic ties in the European Economic Area, the EU has confirmed. Alongside the proposal, the EU is pursuing a "metals alliance" with the US to protect their respective economies from excess production. EU needs to act now, and decisively, prior to operations cease in significant portions of the European steel sector and its supply networks.