EU announces plan to double steel tariffs, leaving UK industry reeling

The European Commission has announced the doubling of steel imports tariffs worldwide above a quota set at 2013 levels, in a move that could devastate the UK steel industry.

The Commission will halve the amount of steel that can be imported tariff-free to 18.3 million tons a year, while tariffs on anything above that will rise from 25 to 50 percent.

The policy mirrors U.S. President Donald Trump's tariffs aimed at keeping out less expensive metals from China.

The proposal will replace the steel safeguard measure that is set to expire by June 2026. 

EU industry chief Stephane Sejourne said: "The European steel industry was on the verge of collapse. We are protecting it so that it can invest, decarbonise, and become competitive again."

Addressing reporters ahead of presenting the plan at the European Parliament in Strasbourg, Sejourne added: "We're not doing Trump-style politics."

There are fears that the policy will disproportionately damage the UK steel industry because currently 80 percent of UK steel exports go to Europe. There are also worries that steel imports previously bound for EU countries could flood the UK market.

Lobby groups have called on the UK government to support the steel industry to prevent its decimation. The government was forced to intervene earlier this year to take control of British Steel from previous Chinese owner Jingye.

Ursula von der Leyen, President of the European Commission, welcomed the tariff announcement, saying "a strong, decarbonized steel sector is vital for the European Union's competitiveness, economic security and strategic autonomy."

"Global overcapacity is damaging our industry. We need to act now - I urge the Council and Parliament to move ahead quickly."

EU plans also involve strengthening the traceability of steel markets by introducing a Melt and Pour requirement to prevent circumvention.

The Commission's proposal will now be sent to the European Parliament and the European Council to agree on the final regulation.

The decision will need a qualified majority in the Council to be adopted. If adopted, the measure will come into force in June 2026. 

The EU steelmaking industry is the world's third largest steel producer, employing around 300,000 people directly and supporting 2.5 million jobs indirectly, with steel production sites across more than 20 EU Member States.