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EU officials declared they will mirror the United States' steel tariffs, effectively doubling levies on imports to 50% in a decision condemned as "an existential threat" to the industry in the UK.

Unprecedented Crisis for British Steel Exports

Given that 80% of UK steel shipments going to the EU, this change creates the British steel sector's most severe challenge, as stated by the lobby group representing the industry.

New EU Measures and Rules

In its plan presented to the EU legislature on Tuesday, the EU executive also proposed cutting the current allowance for duty-free imports and requiring international producers to declare the origin of steel production to stop Chinese producers sneaking products in through other countries.

The European steel industry faced potential 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a quota system that has been functioning for the past seven years and which is due to expire in 2026 and is now seen as outdated. To do nothing could have been "disastrous" for the sector, a European official said.

Sector Response and Concerns

Nevertheless, Gareth Stace, from the industry body British Steel, stated EU doubling its tariffs would create "the biggest crisis the UK steel industry has ever faced".

He called on the UK authorities to "acknowledge the urgent need to implement its own measures to defend" the UK steel industry – which is affected by a twenty-five percent duty imposed by the US recently – from the risk of millions of tonnes of global steel diverted away from US and European markets.

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

Labor and Political Pressure

Alasdair McDiarmid, representative at labor union Community, stated the new measures posed "an existential threat" to British steel production.

Unions and industry leaders called on Keir Starmer to begin talks urgently with the European Union on nation-specific tariff exemptions, noting that the UK was now the EU's No 1 trading partner.

Industry Background

Sector representatives in the EU have repeatedly cautioned for several months that the European steel sector confronts being "wiped out" through the increased duties on American market shipments along with high energy costs and cheap Chinese competition.

Steel on both sides of the Channel is described as a foundational industry, providing elemental components in products ranging from skyscraper structures, renewable energy equipment and railways to dishwashers and kitchenware.

Implementation and Next Steps

The new measures must be agreed by member states and the European parliament, with the European Commission president calling on national governments and MEPs to move quickly in backing the initiative.

If the plan is ratified, the European Union will reduce its current duty-free quota by 47% to 18.3 million tons a year, a volume previously recorded in 2013. It will impose a 50% tariff on foreign steel beyond the quota and require nations exporting into the EU to state where the steel was melted and poured to avoid bypassing of the sanctions.

Exemptions and Global Partnerships

Norway, Iceland, and Liechtenstein will be exempt from tariff quotas or tariffs because of their close trading relationship in the EEA, the EU has confirmed.

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

EU must take immediate action, and firmly, before operations cease in significant portions of the European steel sector and its value chains.