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EU officials have announced plans to mirror the United States' import duties on steel, increasing to double taxes on imports to fifty percent in a decision condemned as "an existential threat" to the industry in the UK.

Unprecedented Crisis for UK Steel Exports

Given that 80% of UK steel shipments destined for the European Union, this policy shift creates the British steel sector's most severe challenge, according to the industry association representing the sector.

European Commission Measures and Regulations

Through its proposal presented to the EU legislature on Tuesday, the EU executive additionally suggested slashing the current allowance for tariff-exempt steel and obliging international producers to disclose the origin of steel production to prevent Chinese producers sneaking products in through third nations.

The European steel industry was on the verge of collapse – these measures safeguard it so that it can invest, reduce emissions, and regain competitiveness.

Overhaul of Current Framework

The proposals 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 considered ineffective. To do nothing could have been "disastrous" for the industry, one EU official said.

Sector Reaction and Concerns

Nevertheless, industry representatives, head of the trade association British Steel, said EU increasing duties would create "the most severe challenge the British steel sector has ever faced".

There were calls for the government to "acknowledge the urgent need to put in place domestic protections to protect" the UK steel industry – which is affected by a twenty-five percent duty from Trump recently – from the risk of millions of tonnes of world steel redirected from US and European markets.

This surge in foreign steel "might prove terminal for many of our remaining steel companies.

Union and Political Pressure

Alasdair McDiarmid, assistant general secretary at steelworkers' union the industry union, stated the new measures posed "a survival risk" to UK steel.

Labor and business representatives called on Keir Starmer to begin talks immediately with the EU on nation-specific duty-free quotas, noting that the United Kingdom was now the EU's primary trading partner.

Industry Background

Sector representatives in the European Union have repeatedly cautioned for months that the European steel sector faces being "eliminated" through the new 50% tariffs on American market shipments along with high energy costs and cheap Chinese competition.

Steel on both sides of the Channel is described as a essential sector, providing basic materials in everything from skyscraper structures, renewable energy equipment and railways to dishwashers and cutlery.

Adoption and Next Steps

The new measures must be agreed by member states and the European parliament, with the EU executive head calling on member states and MEPs to act fast in support of the proposal.

If the plan is ratified, the EU will reduce its existing tariff-free allowance by 47% to 18.3 million tons a annually, a level previously recorded in 2013. It will impose a fifty percent tariff on imports beyond the quota and oblige countries shipping to the EU to state where the steel was melted and poured to prevent circumvention of the measures.

Exemptions and Global Partnerships

Norway, Iceland, and Liechtenstein will be exempt from import limits or tariffs due to their strong economic ties in the European Economic Area, the European Union has confirmed.

In addition to these measures, the EU is pursuing a "steel partnership" with the US to protect their respective economies from overcapacity.

EU must take immediate action, and decisively, prior to operations cease in large parts of the EU steel industry and its supply networks.