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EU officials have announced plans to match Donald Trump's steel tariffs, effectively doubling levies on foreign steel to fifty percent in a move condemned as "a survival risk" to the industry in the UK.

Major Challenge for British Steel Exports

Given that eighty percent of British exports destined for the EU, this policy shift poses the British steel sector's largest crisis, as stated by the industry association speaking for the sector.

New EU Measures and Rules

Through its proposal submitted to the EU legislature on Tuesday, the European Commission additionally suggested slashing the existing quota for tariff-exempt steel and obliging international producers to state the origin of steel production to prevent China sneaking products in through third nations.

The European steel industry stood at the brink of failure – we are protecting it so that it can invest, reduce emissions, and regain competitiveness.

Replacement of Existing System

These measures are designed to replace a quota system that has been functioning for the past seven years and which is set to expire in 2026 and is now considered ineffective. To do nothing could have been "catastrophic" for the sector, one EU official stated.

Industry Response and Concerns

However, industry representatives, from the industry body British Steel, stated Brussels increasing duties would pose "the biggest crisis the UK steel industry has encountered".

He called on the UK authorities to "recognise the urgent need to implement its own measures to defend" the UK steel industry – which is still reeling from a twenty-five percent tariff from Trump recently – from the threat of millions of tonnes of global steel diverted away from US and European markets.

This flood of imports "might prove terminal for many of our remaining steel companies.

Union and Political Pressure

Union leaders, representative at labor union Community, said the proposed changes posed "a survival risk" to UK steel.

Labor and business representatives called on the UK government to begin talks urgently with the EU on nation-specific tariff exemptions, noting that the United Kingdom was now the EU's No 1 trading partner.

Industry Background

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

Steel on in both the UK and EU is considered a foundational industry, providing basic materials in everything from building frameworks, renewable energy equipment and transport infrastructure to dishwashers and cutlery.

Implementation and Future Actions

The new measures require approval by EU nations and the European parliament, with the European Commission president urging member states and European parliament members to act fast in support of the initiative.

Should approval be granted, the EU will cut its existing tariff-free allowance by 47% to 18.3m tonnes a year, a volume last seen in 2013. It will impose a fifty percent duty on imports exceeding the limit and require nations exporting into the bloc to declare where the steel was melted and poured to avoid bypassing of the sanctions.

Exemptions and International Cooperation

These European nations will be exempt from tariff quotas or tariffs due to their strong economic ties in the EEA, the EU has confirmed.

In addition to these measures, the European Union is seeking a "metals alliance" with the US to ringfence their national industries from overcapacity.

EU needs to act now, and decisively, prior to all lights go out in large parts of the EU steel industry and its value chains.