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The European Union declared plans to mirror the United States' steel tariffs, effectively doubling taxes on imports to 50% in a decision condemned as "an existential threat" to the industry in Britain.

Major Challenge for British Steel Industry

Given that eighty percent of UK steel shipments destined for the European Union, this policy shift creates the UK steel industry's largest crisis, according to the lobby group speaking for the sector.

New EU Measures and Regulations

In its plan presented to the EU legislature on Tuesday, the European Commission also proposed cutting the existing quota for tariff-exempt steel and requiring international producers to state the origin of steel production to stop China sneaking products in through third nations.

The European steel industry stood at the brink of failure – these measures safeguard it so that investments can be made, decarbonise, and become competitive again.

Replacement of Current Framework

The proposals are intended to replace a import framework that has been in operation for the past seven years and which is due to expire in 2026 and is now seen as ineffective. Inaction could have been "fatal" for the sector, a European official stated.

Sector Reaction and Warnings

Nevertheless, Gareth Stace, from the trade association British Steel, said EU increasing duties would pose "the most severe challenge the British steel sector has encountered".

There were calls for the government to "acknowledge the critical necessity to put in place its own measures to defend" the UK steel industry – which is still reeling from a 25% tariff from Trump recently – from the threat of vast quantities of global steel diverted away from US and European markets.

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

Labor and Government Pressure

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

Unions and industry leaders called on Keir Starmer to start negotiations urgently with the EU on country-specific duty-free quotas, noting that the UK was now the EU's No 1 export market.

Broader Context

Industry leaders in the European Union have repeatedly cautioned for months that the European steel sector faces being "eliminated" through the increased duties on exports to the US along with rising energy prices and low-cost Chinese imports.

The steel industry on in both the UK and EU is described as a foundational industry, providing basic materials in everything from skyscraper structures, wind turbines and transport infrastructure to dishwashers and kitchenware.

Adoption and Future Actions

The new measures must be agreed by member states and the EU legislature, with the EU executive head calling on member states and MEPs to act fast in support of the proposal.

Should approval be granted, the EU will cut its current duty-free quota by 47% to 18.3 million tons a annually, a volume previously recorded in 2013. It will impose a 50% duty on foreign steel beyond the quota and oblige nations exporting into the EU to state the production origin to avoid bypassing of the measures.

Exemptions and Global Partnerships

These European nations will not be subject to tariff quotas or tariffs due to their strong economic ties in the EEA, the European Union has said.

In addition to these measures, the EU is seeking a "steel partnership" with the United States to protect their national industries from overcapacity.

The European Union must take immediate action, and firmly, prior to all lights go out in large parts of the European steel sector and its value chains.