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The European Union declared plans to mirror Donald Trump's steel tariffs, effectively doubling levies on imports to fifty percent in a move condemned as "a survival risk" to the industry in Britain.

Major Challenge for UK Steel Exports

Given that 80% of British exports going to the European Union, this change poses the UK steel industry's largest crisis, as stated by the lobby group speaking for the industry.

European Commission Measures and Regulations

Through its proposal presented to the European parliament this week, the EU executive also proposed reducing the existing quota for tariff-exempt steel and obliging international producers to state where the steel was melted and poured to prevent China diverting exports through third nations.

The European steel industry faced potential collapse – these measures safeguard it so that investments can be made, reduce emissions, and become competitive again.

Replacement of Existing System

The proposals are designed to supersede a import framework that has been functioning for the last seven years and which is set to expire in 2026 and is now considered not fit for purpose. Inaction could have been "disastrous" for the sector, one EU official said.

Industry Reaction and Concerns

However, industry representatives, from the trade association UK Steel, stated Brussels increasing duties would create "the biggest crisis the UK steel industry has ever faced".

There were calls for the UK authorities to "acknowledge the critical necessity to implement its own measures to protect" the British steel sector – which is still reeling from a twenty-five percent tariff from the US recently – from the threat of millions of tonnes of world steel redirected from US and European markets.

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

Union and Political Pressure

Union leaders, representative at steelworkers' union Community, stated the new measures posed "an existential threat" to British steel production.

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

Broader Context

Sector representatives in the EU have repeatedly cautioned for months that the European steel sector confronts being "wiped out" through the increased duties on American market shipments combined with high energy costs and low-cost Chinese imports.

The steel industry on in both the UK and EU is considered a foundational industry, providing elemental components in everything from skyscraper structures, wind turbines and transport infrastructure to household appliances and cutlery.

Implementation and Next Steps

The new measures require approval by member states and the EU legislature, with the EU executive head urging national governments and European parliament members to move quickly in backing the proposal.

Should approval be granted, the EU will cut its existing tariff-free allowance by 47% to 18.3m tonnes a year, a level last seen in 2013. It will impose a 50% duty on imports exceeding the limit and oblige countries shipping to the EU to state the production origin to prevent circumvention of the sanctions.

Exceptions and Global Partnerships

Norway, Iceland, and Liechtenstein will be exempt from tariff quotas or tariffs because of their strong economic ties in the EEA, the European Union has confirmed.

Alongside the proposal, the European Union is pursuing a "steel partnership" with the United States to protect their respective economies from overcapacity.

The European Union needs to act now, and firmly, prior to all lights go out in significant portions of the EU steel industry and its value chains.