🔗 Share this article

The European Union have announced plans to adopt the United States' steel tariffs, increasing to double taxes on imports to 50% in a action condemned as "a survival risk" to the sector in Britain.

Unprecedented Crisis for UK Steel Exports

With 80% of British exports destined for the EU, this policy shift represents the British steel sector's most severe challenge, as stated by the lobby group representing the industry.

European Commission Proposals and Regulations

In its plan presented to the European parliament on Tuesday, the European Commission additionally suggested cutting the existing quota for duty-free imports and requiring foreign suppliers to disclose where the steel was melted and poured to prevent Chinese producers sneaking products in through third nations.

The European steel industry was on the verge of collapse – we are protecting it so that investments can be made, reduce emissions, and become competitive again.

Replacement of Existing System

These measures are intended to replace a quota system that has been functioning for the last 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 said.

Industry Reaction and Warnings

Nevertheless, industry representatives, head of the industry body British Steel, said Brussels increasing duties would pose "the most severe challenge the British steel sector has ever faced".

There were calls for the UK authorities to "recognise the critical necessity to put in place domestic protections to defend" the British steel sector – which is affected by a 25% tariff from the US earlier this year – from the risk of millions of tonnes of world steel diverted away from US and European markets.

This flood of imports "could be terminal for numerous steel companies.

Union and Political Pressure

Union leaders, assistant general secretary at steelworkers' union Community, said the proposed changes represented "a survival risk" to British steel production.

Unions and industry leaders called on the UK government to start negotiations urgently with the European Union on nation-specific duty-free quotas, noting that the United Kingdom was now the European Union's primary export market.

Industry Background

Industry leaders in the European Union have repeatedly cautioned for months that their own industry faces being "wiped out" through the increased duties on American market shipments combined with rising energy prices and cheap Chinese competition.

The steel industry on both sides of the Channel is described as a essential sector, supplying basic materials in everything from skyscraper structures, renewable energy equipment and railways to household appliances and kitchenware.

Implementation 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 EU will reduce its current duty-free quota by 47% to 18.3 million tons a year, a volume previously recorded in 2013. It will impose a fifty percent tariff on imports exceeding the limit and oblige nations exporting into the bloc to state where the steel was melted and poured to prevent circumvention of the measures.

Exceptions and International Cooperation

Norway, Iceland, and Liechtenstein will be exempt from tariff quotas or duties because of their strong economic ties in the EEA, the European Union has confirmed.

In addition to these measures, the European Union is pursuing a "steel partnership" with the US to protect their national industries from excess production.

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