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EU officials revealed plans to mirror the United States' steel tariffs, increasing to double taxes on imports to fifty percent in a decision described as "an existential threat" to the sector in the UK.

Unprecedented Crisis for British Steel Industry

Given that 80% of UK steel shipments going to the European Union, this policy shift poses the UK steel industry's largest crisis, as stated by the industry association representing the sector.

New EU Proposals and Regulations

Through its proposal submitted to the EU legislature this week, the EU executive also proposed slashing the current allowance for tariff-exempt steel and obliging international producers to state where the steel was melted and poured to prevent China sneaking products in through other countries.

EU steel sector faced potential collapse – these measures safeguard it so that investments can be made, decarbonise, and regain competitiveness.

Overhaul of Existing System

The proposals are designed to replace a import framework that has been in operation for the past seven years and which is set to expire in 2026 and is now seen as not fit for purpose. To do nothing could have been "catastrophic" for the sector, a European official stated.

Sector Response and Concerns

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

There were calls for the government to "acknowledge the critical necessity to put in place its own measures to defend" the British steel sector – which is affected by a twenty-five percent tariff imposed by Trump recently – from the threat of vast quantities of global steel diverted away from US and European markets.

This surge in foreign steel "might prove terminal for numerous steel companies.

Union and Political Calls

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

Unions and industry leaders called on the UK government to start negotiations immediately with the European Union on nation-specific tariff exemptions, noting that the United Kingdom was now the European Union's primary export market.

Broader Context

Industry leaders in the EU have repeatedly cautioned for several months that the European steel sector confronts being "eliminated" through the new 50% tariffs on exports to the US combined with rising energy prices and low-cost Chinese imports.

The steel industry on both sides of the Channel is considered a essential sector, providing elemental components in everything from skyscraper structures, wind turbines and transport infrastructure to household appliances and kitchenware.

Implementation and Future Actions

The new measures must be agreed by EU nations and the European parliament, with the EU executive head calling on member states and MEPs to move quickly in backing the initiative.

Should approval be granted, the European Union will reduce its existing tariff-free allowance by forty-seven percent to 18.3m tonnes a year, a volume last seen in 2013. It will impose a 50% duty on imports exceeding the limit and oblige countries shipping to the EU to declare the production origin to prevent circumvention of the measures.

Exceptions and Global Partnerships

Norway, Iceland, and Liechtenstein will not be subject to tariff quotas or tariffs because of their close trading relationship in the EEA, the EU has confirmed.

In addition to these measures, the EU is seeking a "metals alliance" with the US to ringfence their national industries from overcapacity.

EU must take immediate action, and decisively, before operations cease in significant portions of the EU steel industry and its value chains.