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The European Union have announced plans to mirror the United States' import duties on steel, effectively doubling taxes on foreign steel to fifty percent in a decision described as "an existential threat" to the industry in Britain.

Unprecedented Crisis for British Steel Industry

With 80% of British exports destined for the EU, this policy shift represents the British steel sector's most severe challenge, as stated by the lobby group representing the industry.

New EU Measures and Rules

Through its proposal presented to the EU legislature on Tuesday, the European Commission also proposed slashing the existing quota for tariff-exempt steel and requiring foreign suppliers to declare the origin of steel production to stop Chinese producers diverting exports through other countries.

EU steel sector faced potential collapse – we are protecting it so that it can invest, decarbonise, and become competitive again.

Replacement of Existing System

These measures are intended 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. To do nothing could have been "catastrophic" for the sector, one EU official stated.

Industry Reaction and Warnings

However, Gareth Stace, head of the industry body UK Steel, said EU increasing duties would pose "the biggest crisis the British steel sector has encountered".

He called on the government to "acknowledge the critical necessity to put in place domestic protections to protect" the British steel sector – which is affected by a 25% tariff from Trump recently – from the risk of vast quantities of global steel redirected from US and European markets.

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

Labor and Political Calls

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

Unions and industry leaders urged the UK government to begin talks urgently with the European Union on country-specific duty-free quotas, noting that the United Kingdom was now the EU's primary trading partner.

Industry Background

Industry leaders in the EU have also been warning for several months that their own industry faces being "eliminated" through the increased duties on exports to the US along with rising energy prices and cheap Chinese competition.

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

Implementation and Future Actions

These proposals require approval by EU nations and the European parliament, with the EU executive head urging member states and European parliament members to move quickly in backing 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 year, a volume last seen in 2013. It will apply a fifty percent duty on imports beyond the quota and require countries exporting into the bloc to declare the production origin to prevent circumvention of the sanctions.

Exceptions and International Cooperation

Norway, Iceland, and Liechtenstein will be exempt from tariff quotas or duties due to their strong economic ties in the European Economic Area, the European Union has said.

Alongside the proposal, the European Union is seeking a "metals alliance" with the United States to ringfence their respective economies from excess production.

EU must take immediate action, and decisively, before operations cease in significant portions of the European steel sector and its supply networks.