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The European Union revealed plans to mirror the United States' steel tariffs, effectively doubling taxes on foreign steel to 50% in a decision described as "a critical danger" to the industry in Britain.

Major Challenge for British Steel Industry

Given that eighty percent of British exports destined for the European Union, this policy shift creates the UK steel industry's biggest ever challenge, as stated by the industry association speaking for the industry.

New EU Measures and Rules

Through its proposal submitted to the EU legislature this week, the European Commission also proposed reducing the current allowance for duty-free imports and obliging international producers to state the origin of steel production to prevent Chinese producers diverting exports through other countries.

EU steel sector faced potential collapse – we are protecting it so that it can invest, reduce emissions, and regain competitiveness.

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system that has been functioning for the last seven years and which is due to expire in 2026 and is now considered outdated. To do nothing could have been "catastrophic" for the industry, a European official said.

Sector Reaction and Warnings

Nevertheless, Gareth Stace, head of the industry body British Steel, stated Brussels increasing duties would create "the biggest crisis the UK steel industry has encountered".

He called on the UK authorities to "recognise the urgent need to put in place domestic protections to defend" the British steel sector – which is still reeling from a twenty-five percent duty imposed by the US recently – from the threat of vast quantities of world steel redirected from American and EU markets.

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

Union and Government Calls

Alasdair McDiarmid, representative at steelworkers' union the industry union, stated the new measures represented "a survival risk" to UK steel.

Labor and business representatives called on Keir Starmer to begin talks immediately with the European Union on country-specific tariff exemptions, noting that the United Kingdom was now the EU's primary trading partner.

Broader Context

Industry leaders 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 low-cost Chinese imports.

Steel on in both the UK and EU is described as a essential sector, supplying basic materials in products ranging from building frameworks, wind turbines and transport infrastructure to dishwashers and cutlery.

Adoption and Next Steps

The new measures require approval by member states and the EU legislature, with the European Commission president calling on national governments and MEPs to move quickly in backing the initiative.

Should approval be granted, the EU will reduce its current duty-free quota by forty-seven percent to 18.3m tonnes a year, a volume last seen in 2013. It will impose a fifty percent tariff on imports exceeding the limit and oblige nations shipping to the bloc to state the production origin to prevent circumvention of the sanctions.

Exceptions and International Cooperation

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

Alongside the proposal, the EU is pursuing a "metals alliance" with the United States to ringfence their respective economies from overcapacity.

EU must take immediate action, and firmly, prior to all lights go out in large parts of the EU steel industry and its supply networks.