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EU officials declared they will mirror the United States' import duties on steel, increasing to double levies on foreign steel to 50% in a action condemned as "a critical danger" to the sector in the UK.

Major Challenge for UK Steel Industry

Given that 80% of UK steel shipments destined for the European Union, this change represents the UK steel industry's largest crisis, according to the industry association speaking for the industry.

European Commission Measures and Rules

Through its proposal presented to the EU legislature on Tuesday, the European Commission additionally suggested slashing the existing quota for tariff-exempt steel and obliging international producers to state the origin of steel production to prevent China sneaking products in through other countries.

The European steel industry was on the verge of 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 not fit for purpose. Inaction could have been "disastrous" for the industry, a European official stated.

Industry Response and Concerns

Nevertheless, Gareth Stace, from the trade association British Steel, stated 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 domestic protections to defend" the UK steel industry – which is still reeling from a twenty-five percent tariff from Trump recently – from the risk of millions of tonnes of world steel redirected from American and EU markets.

This surge in foreign steel "could be fatal for many of our remaining steel companies.

Labor and Political Pressure

Union leaders, assistant general secretary at labor union Community, said the new measures represented "a survival risk" to British steel production.

Unions and industry leaders urged Keir Starmer to begin talks urgently with the EU on country-specific tariff exemptions, pointing out that the United Kingdom was now the EU's primary export market.

Industry Background

Industry leaders in the EU have repeatedly cautioned for months that the European steel sector faces being "eliminated" through the new 50% tariffs on exports to the US along with high energy costs and low-cost Chinese imports.

The steel industry on in both the UK and EU is considered a essential sector, providing basic materials in everything from skyscraper structures, renewable energy equipment and transport infrastructure to dishwashers and cutlery.

Implementation and Next Steps

The new measures must be agreed by EU nations and the European parliament, with the European Commission president urging member states and MEPs to act fast in backing the proposal.

If the plan is ratified, the European Union will reduce its current duty-free quota by forty-seven percent to 18.3 million tons a year, a volume previously recorded in 2013. It will apply a 50% tariff on foreign steel exceeding the limit and require countries exporting into the bloc to state where the steel was melted and poured to avoid bypassing of the sanctions.

Exemptions and Global Partnerships

These European nations will not be subject to import limits or duties because of their strong economic ties in the EEA, the EU has said.

Alongside the proposal, the European Union is seeking a "metals alliance" with the United States to protect their national industries from excess production.

EU needs to act now, and firmly, prior to operations cease in large parts of the EU steel industry and its supply networks.