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The European Union have announced they will mirror the United States' import duties on steel, increasing to double levies on imports to 50% in a move condemned as "a critical danger" to the industry in Britain.

Major Challenge for British Steel Exports

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

European Commission Measures and Rules

In its plan presented to the European parliament on Tuesday, the European Commission also proposed reducing the existing quota for tariff-exempt steel and obliging foreign suppliers to declare where the steel was melted and poured to prevent Chinese producers sneaking products in through other countries.

EU steel sector faced potential collapse – we are protecting it so that it can invest, reduce emissions, and regain competitiveness.

Overhaul 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 due to expire in 2026 and is now considered not fit for purpose. Inaction could have been "catastrophic" for the industry, a European official said.

Sector Response and Warnings

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

He called on the UK authorities to "recognise the critical necessity to put in place domestic protections to protect" the British steel sector – which is affected by a twenty-five percent tariff from the US recently – from the threat of millions of tonnes of world steel diverted away from US and European markets.

This flood of imports "could be fatal for numerous steel companies.

Labor and Political Pressure

Union leaders, representative at labor union the industry union, stated the proposed changes posed "a survival risk" to British steel production.

Labor and business representatives called on Keir Starmer to start negotiations immediately with the EU on country-specific tariff exemptions, noting that the United Kingdom was now the EU's No 1 export market.

Industry Background

Sector representatives in the European Union have also been warning for months that the European steel sector confronts being "wiped out" through the new 50% tariffs on American market shipments along with rising energy prices and cheap Chinese competition.

The steel industry on both sides of the Channel is considered a foundational industry, supplying basic materials in everything from building frameworks, renewable energy equipment and railways to dishwashers and cutlery.

Adoption and Future Actions

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

Should approval be granted, the European Union will cut its current duty-free quota by forty-seven percent to 18.3 million tons a year, a level previously recorded in 2013. It will apply a 50% tariff on imports beyond the quota and oblige nations shipping to the EU to state where the steel was melted and poured to prevent circumvention of the measures.

Exemptions and International Cooperation

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

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

EU needs to act now, and decisively, prior to all lights go out in significant portions of the EU steel industry and its supply networks.