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EU officials have announced plans to mirror Donald Trump's steel tariffs, effectively doubling levies on imports to fifty percent in a decision described as "an existential threat" to the industry in the UK.

Unprecedented Crisis for British Steel Industry

With 80% of British exports destined for the European Union, this change poses the UK steel industry's biggest ever challenge, according to the industry association representing the sector.

New EU Measures and Regulations

In its plan presented to the European parliament this week, the European Commission additionally suggested cutting the existing quota for duty-free imports and obliging international producers to declare where the steel was melted and poured to prevent Chinese producers diverting exports through third nations.

The European steel industry faced potential collapse – we are protecting it so that investments can be made, decarbonise, and regain competitiveness.

Replacement of Current Framework

These measures are designed to replace a quota system that has been functioning for the past seven years and which is set to expire in 2026 and is now seen as outdated. To do nothing could have been "disastrous" for the sector, a European official stated.

Industry Response and Concerns

Nevertheless, Gareth Stace, from the trade association UK Steel, said Brussels doubling its tariffs would create "the most severe challenge the British steel sector has encountered".

He called on the UK authorities to "acknowledge the urgent need to put in place its own measures to defend" the UK steel industry – which is still reeling from a 25% duty imposed by Trump recently – from the risk of vast quantities of global steel diverted away from US and European markets.

This flood of imports "might prove terminal for many of our remaining steel companies.

Labor and Political Calls

Union leaders, assistant general secretary at steelworkers' union the industry union, said the proposed changes represented "a survival risk" to British steel production.

Unions and industry leaders called on Keir Starmer to start negotiations urgently with the EU on country-specific duty-free quotas, noting that the United Kingdom was now the European Union's primary export market.

Industry Background

Industry leaders in the European Union have also been warning for months that the European steel sector confronts being "eliminated" through the new 50% tariffs on American market shipments along with rising energy prices and low-cost Chinese imports.

Steel on both sides of the Channel is considered a essential sector, providing elemental components in products ranging from skyscraper structures, renewable energy equipment and railways to dishwashers and cutlery.

Adoption and Future Actions

The new measures must be agreed by EU nations and the European parliament, with the EU executive head urging national governments and MEPs to act fast in support of the initiative.

If the plan is ratified, the European Union will cut its existing tariff-free allowance by forty-seven percent to 18.3 million tons a annually, a volume last seen in 2013. It will impose a 50% tariff on foreign steel beyond the quota and require nations shipping to the EU to state the production origin to avoid bypassing of the sanctions.

Exceptions and International Cooperation

These European nations will not be subject to tariff quotas or duties because of their strong economic ties in the EEA, the EU has confirmed.

Alongside the proposal, the European Union is seeking a "metals alliance" with the US to ringfence their respective economies from overcapacity.

The European Union must take immediate action, and firmly, before all lights go out in significant portions of the European steel sector and its supply networks.