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EU officials have announced they will mirror Donald Trump's import duties on steel, effectively doubling levies on foreign steel to fifty percent in a action described as "an existential threat" to the sector in Britain.

Unprecedented Crisis for UK Steel Industry

With 80% of UK steel shipments destined for the EU, this change poses the UK steel industry's largest challenge, as stated by the lobby group speaking for the industry.

European Commission Measures and Regulations

In its plan submitted to the EU legislature this week, the EU executive additionally suggested slashing the existing quota for duty-free imports and requiring international producers to disclose where the steel was melted and poured to prevent Chinese producers diverting exports through third nations.

EU steel sector was on the verge of collapse – we are protecting it so that investments can be made, reduce emissions, and regain competitiveness.

Replacement of Existing System

The proposals are intended to replace a quota system that has been functioning for the last seven years and which is set to expire in 2026 and is now seen as ineffective. To do nothing could have been "catastrophic" for the industry, a European official stated.

Industry Response and Warnings

Nevertheless, industry representatives, head of the industry body British Steel, stated Brussels doubling its tariffs would create "the biggest crisis the UK steel industry has ever faced".

He called on the government to "acknowledge the critical necessity to put in place domestic protections to protect" the British steel sector – which is still reeling from a 25% duty imposed by the US recently – from the risk of millions of tonnes of global steel diverted away from US and European markets.

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

Labor and Government Pressure

Union leaders, assistant general secretary at steelworkers' union Community, said the proposed changes represented "an existential threat" to UK steel.

Unions and industry leaders called on the UK government to start negotiations urgently with the EU on country-specific tariff exemptions, noting that the UK was now the EU's primary export market.

Broader Context

Industry leaders in the EU have repeatedly cautioned for several months that their own industry confronts being "wiped out" through the increased duties on American market shipments along with rising energy prices and cheap Chinese competition.

The steel industry on in both the UK and EU is considered a foundational industry, supplying elemental components in products ranging from building frameworks, renewable energy equipment and transport infrastructure to household appliances and cutlery.

Implementation and Future Actions

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.

Should approval be granted, the EU will reduce its current duty-free quota by forty-seven percent to 18.3 million tons a annually, a level previously recorded in 2013. It will impose a 50% tariff on imports beyond the quota and require nations exporting into the bloc to state the production origin to avoid bypassing of the sanctions.

Exemptions and International Cooperation

These European nations will not be subject to import limits or tariffs due to their close trading relationship in the European Economic Area, the European Union has confirmed.

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

The European Union must take immediate action, and decisively, prior to operations cease in large parts of the European steel sector and its value chains.