Britain's steel industry is set to plunged into its "biggest crisis in history" with the EU set to propose major tariffs on the metal from today.

The European Commission is preparing to impose a global tariff of 50 per cent on the importation of steel on Tuesday, according to documents obtained by the Financial Times.

The move is set to wreak havoc on Britain's steel industry - as 80 per cent of its exports go to Europe.

With American steel tariffs still in place, one industry insider warned that Tuesday's looming levies "risk being Trump on steroids".

The proposed tariffs have also sparked fears that Britain could be flooded with EU-imported steel after the measure comes into effect.

The move is set to wreak havoc on Britain's steel industry as 80 per cent of its exports goes to Europe

The director-general of the UK Steel lobby group Gareth Stace has warned that Brussels's new mega-tariffs “could be terminal for many of our remaining steel companies”.

Mr Stace has now pleaded with the Government to “recognise the urgent need to put in place its own measures to defend against a flood of imports”.

He added: “This is perhaps the biggest crisis the UK steel industry has ever faced.

"The Government must go all out to leverage our trading relationship with the European Union to secure UK country quotas - or potentially face disaster."

Sir Keir Starmer has previously been accused of "abandoning" Britain's steel industry after the Labour Government failed to reach a tariff-free deal with US President Donald Trump in July.

The tariffs slapped on Britain by Mr Trump are lower than around the world, but still mean the sector faces a 25 per cent levy on exporting steel into the US.

In response to the proposed EU tariffs, Keir Starmer's Government hinted it could hit back - and even labelled the levies 'unfair'

After the Government's failure to secure a deal, UK Steel warned that huge levies "costs our steelmakers dearly".

The sector's trade body added that high tariffs mean "contracts slip away, investment plans stall and uncertainty freezes business decisions".

While Liam Bates, president of long products at Marcegaglia, which maintains a pair of stainless steel plants in the UK, said the move was no surprise after the impact of Mr Trump's tariffs on the EU steel industry.

He said the new taxes from Brussels would place "huge stress" on Marcegaglia's UK business.

In August, the Department for Business and Trade crowed of how steel producers secured "a direct win from the Prime Minister’s EU deal signed back in May" by regaining tariff-free access to the EU market for "key steel products".

While British Steel's interim chief commercial officer Lisa Coulson hailed the deal as a "significant boost to our business".

But now, Britain's embattled steelmakers have urged the Government to fast-track its highly-anticipated steel strategy to help forge the sector's future.

Mr Bates said: "Coming immediately after the disappointment of not getting zero free tariffs from the US, we are eagerly anticipating the Government's steel strategy and efforts to make electricity prices competitive."

The EU's steel industry has also been in dire straits in recent years as it struggles to compete with cheap imports from Asia and other developing areas of the globe.

In 2024, the European sector announced cuts of more than 18,000 jobs in its industry.

Over 80,000 jobs have now been lost in the EU's steel sector since 2008, according the Eurofer industry lobby.

One EU official said the situation left the bloc with no choice but to act.

"There is no other way to ensure the long-term protection of the steel industry... If not, we are going to find ourselves without a steel industry," they told the FT.

Britain's steel industry produced its lowest amount of domestic crude steel since the Great Depression

Last year, Britain's steel industry produced its lowest amount of domestic crude steel since the Great Depression, with just four million tonnes manufactured.

In response to the proposed EU tariffs, the Government hinted it could hit back - and even labelled the levies "unfair".

A spokesman said: “We continue to work closely with EU partners as we await the full details of these plans from and their impact on UK businesses.

"The Government will continue to fully back the British steel industry - protecting skilled jobs and supporting economic growth, as part of our plan for change.

“That is why we have committed up to £2.5billion of investment to rebuild the industry, and are exploring stronger trade measures to protect UK steel producers from unfair behaviours."