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The European Union declared plans to mirror the United States' import duties on steel, increasing to double levies on foreign steel to fifty percent in a move condemned as "an existential threat" to the sector in Britain.

Unprecedented Crisis for UK Steel Industry

Given that eighty percent of British exports going to the European Union, this change creates the British steel sector's largest challenge, according to the industry association speaking for the sector.

European Commission Proposals and Rules

Through its proposal submitted to the EU legislature this week, the European Commission additionally suggested reducing the current allowance for tariff-exempt steel and requiring international producers to disclose the origin of steel production to stop Chinese producers diverting exports through third nations.

The European steel industry stood at the brink of failure – these measures safeguard it so that investments can be made, decarbonise, and become competitive again.

Replacement of Existing System

These measures are designed to supersede a quota system that has been functioning for the last seven years and which is set to expire in 2026 and is now considered not fit for purpose. Inaction could have been "disastrous" for the sector, a European official stated.

Industry Response and Concerns

However, industry representatives, from the industry body UK Steel, said EU doubling its tariffs would pose "the biggest crisis the UK steel industry has ever faced".

There were calls for the government to "acknowledge the critical necessity to implement domestic protections to protect" the British steel sector – which is affected by a 25% tariff imposed by Trump recently – from the threat of vast quantities of world steel diverted away from US and European markets.

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

Labor and Government Pressure

Union leaders, representative at labor union Community, stated the new measures posed "a survival risk" to British steel production.

Unions and industry leaders urged Keir Starmer to begin talks urgently with the European Union on country-specific duty-free quotas, pointing out that the United Kingdom was now the European Union's primary export market.

Industry Background

Industry leaders in the EU have repeatedly cautioned for months that their own industry confronts being "wiped out" through the new 50% tariffs on American market shipments along with high energy costs and cheap Chinese competition.

Steel on in both the UK and EU is considered a foundational industry, supplying elemental components in everything from skyscraper structures, renewable energy equipment and railways to dishwashers and kitchenware.

Implementation and Future Actions

The new measures must be agreed by EU nations and the EU legislature, with the European Commission president urging member states and European parliament members to move quickly in backing the initiative.

If the plan is ratified, the EU will cut its existing tariff-free allowance by 47% to 18.3m tonnes a year, a volume previously recorded in 2013. It will apply a 50% duty on imports exceeding the limit and require countries exporting into the EU to declare the production origin to prevent circumvention of the measures.

Exemptions and International Cooperation

These European nations will not be subject to tariff quotas or tariffs due to their close trading relationship in the European Economic Area, the EU has said.

Alongside the proposal, the European Union is seeking a "steel partnership" with the US to protect their national industries from overcapacity.

The European Union must take immediate action, and decisively, prior to operations cease in significant portions of the European steel sector and its supply networks.