The European Commission has proposed a significant reduction in its tariff-free steel import quota, cutting it by 47% to 18.3 million tonnes and introducing a 50% tariff on any excess imports. This decision has raised alarms within the UK steel industry, which exports approximately 80% of its steel to the EU. Industry leaders, including UK Steel's director general Gareth Stace, have labeled the proposal as a potential disaster, with the trade union Community describing it as an existential threat. The EU justifies the tariff hike as a necessary measure to protect its market from subsidized Asian steel and to address global overcapacity. The UK, facing additional pressures from US tariffs and rising energy costs, is urged to negotiate with the EU to avoid severe repercussions for its steel sector. The proposal is set to take effect in June 2026, pending approval from EU member states and the European Parliament.