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EU officials revealed plans to mirror the United States' steel tariffs, increasing to double levies on imports to fifty percent in a move described as "a critical danger" to the sector in Britain.

Unprecedented Crisis for UK Steel Exports

Given that eighty percent of British exports destined for the European Union, this policy shift poses the UK steel industry's most severe challenge, as stated by the lobby group representing the industry.

European Commission Measures and Regulations

Through its proposal presented to the European parliament on Tuesday, the European Commission also proposed cutting the current allowance for duty-free imports and requiring international producers to state the origin of steel production to stop Chinese producers diverting exports through other countries.

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 designed to supersede a quota system that has been functioning for the past seven years and which is set to expire in 2026 and is now considered not fit for purpose. To do nothing could have been "fatal" for the industry, one EU official stated.

Sector Reaction and Warnings

Nevertheless, industry representatives, head of the industry body UK Steel, said Brussels increasing duties would create "the most severe challenge the British steel sector has encountered".

He called on the government to "acknowledge the critical necessity to put in place domestic protections to defend" the British steel sector – which is affected by a twenty-five percent duty imposed by Trump earlier this year – from the risk of millions of tonnes of global steel diverted away from American and EU markets.

This flood of imports "might prove terminal for numerous steel companies.

Labor and Government Calls

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

Unions and industry leaders called on Keir Starmer to start negotiations immediately with the EU on country-specific duty-free quotas, pointing out that the United Kingdom was now the European Union's No 1 export market.

Industry Background

Sector representatives in the EU have repeatedly cautioned for several months that the European steel sector confronts being "eliminated" through the increased duties on American market shipments along with rising energy prices and low-cost Chinese imports.

The steel industry on both sides of the Channel is considered a foundational industry, supplying elemental components in products ranging from skyscraper structures, wind turbines and railways to dishwashers and kitchenware.

Implementation and Future Actions

These proposals require approval by member states and the EU legislature, with the European Commission president urging national governments and MEPs to move quickly in backing the initiative.

If the plan is ratified, the EU will cut its existing tariff-free allowance by 47% to 18.3 million tons a annually, a level previously recorded in 2013. It will apply a 50% tariff on imports beyond the quota and oblige nations exporting into the bloc to state where the steel was melted and poured to prevent circumvention of the measures.

Exceptions and Global Partnerships

These European nations will be exempt from tariff quotas or duties due to their strong economic ties in the EEA, the EU has confirmed.

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

EU needs to act now, and decisively, before operations cease in significant portions of the European steel sector and its value chains.