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

Major Challenge for UK Steel Industry

Given that 80% of UK steel shipments going to the European Union, this change represents the British steel sector's biggest ever crisis, as stated by the industry association speaking for the industry.

European Commission Measures and Rules

In its plan submitted to the European parliament on Tuesday, the EU executive additionally suggested slashing the current allowance for tariff-exempt steel and obliging foreign suppliers to disclose where the steel was melted and poured to stop China diverting exports through third nations.

The European steel industry was on the verge of collapse – these measures safeguard it so that it can invest, reduce emissions, and become competitive again.

Replacement of Current Framework

The proposals are intended to supersede a quota system that has been in operation for the past seven years and which is set to expire in 2026 and is now seen as ineffective. Inaction could have been "fatal" for the industry, a European official stated.

Industry Response and Concerns

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

He called on the government to "recognise the urgent need to put in place its own measures to protect" the UK steel industry – which is affected by a twenty-five percent duty imposed by Trump earlier this year – from the threat of vast quantities of world steel diverted away from US and European markets.

This surge in foreign steel "could be fatal for numerous steel companies.

Union and Government Calls

Union leaders, assistant general secretary at steelworkers' union the industry union, said the proposed changes represented "a survival risk" to British steel production.

Labor and business representatives urged the UK government to start negotiations immediately with the EU on nation-specific duty-free quotas, pointing out that the UK was now the European Union's No 1 trading partner.

Industry Background

Sector representatives in the EU have repeatedly cautioned for months that the European steel sector faces being "wiped out" through the new 50% tariffs on American market shipments combined with rising energy prices and cheap Chinese competition.

Steel on in both the UK and EU is considered a foundational industry, supplying elemental components in products ranging from building frameworks, wind turbines and transport infrastructure to dishwashers and cutlery.

Implementation and Future Actions

These proposals must be agreed by member states and the EU legislature, with the European Commission president urging national governments and European parliament members to move quickly in backing the initiative.

If the plan is ratified, the European Union will reduce its current duty-free quota by forty-seven percent to 18.3m tonnes a year, a level last seen in 2013. It will impose a 50% duty on imports beyond the quota and oblige nations shipping to the EU to state the production origin to prevent circumvention of the measures.

Exceptions and International Cooperation

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

In addition to these measures, the European Union is pursuing a "steel partnership" with the US to ringfence their national industries from overcapacity.

The European Union needs to act now, and decisively, prior to operations cease in large parts of the European steel sector and its value chains.