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The European Union declared plans to mirror the United States' import duties on steel, increasing to double taxes on foreign steel to 50% in a move condemned as "a critical danger" to the sector in Britain.

Unprecedented Crisis for UK Steel Exports

Given that eighty percent of UK steel shipments destined for the EU, this change poses the British steel sector's largest challenge, according to the lobby group representing the sector.

New EU Measures and Rules

In its plan presented to the European parliament on Tuesday, the European Commission also proposed cutting the current allowance for tariff-exempt steel and requiring foreign suppliers to declare the origin of steel production to stop China diverting exports through other countries.

The European steel industry was on the verge of collapse – we are protecting it so that it can invest, decarbonise, and become competitive again.

Replacement of Current Framework

The proposals are designed to supersede a import framework that has been functioning for the past seven years and which is set to expire in 2026 and is now considered ineffective. Inaction could have been "fatal" for the sector, a European official stated.

Sector Response and Concerns

Nevertheless, industry representatives, from the trade association UK Steel, stated EU doubling its tariffs would create "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% duty imposed by Trump earlier this year – from the risk of vast quantities of world steel redirected from American and EU markets.

This flood of imports "might prove terminal for numerous steel companies.

Labor and Government Calls

Union leaders, assistant general secretary at steelworkers' union Community, stated the proposed changes posed "a survival risk" to British steel production.

Unions and industry leaders called on the UK government to begin talks immediately with the European Union on country-specific duty-free quotas, noting that the UK was now the EU's primary export market.

Broader Context

Sector representatives in the European Union have repeatedly cautioned for several months that the European steel sector faces being "eliminated" through the increased duties on exports to the US combined with rising energy prices and cheap Chinese competition.

Steel on in both the UK and EU is described as a essential sector, supplying elemental components in everything from building frameworks, renewable energy equipment and railways to dishwashers and cutlery.

Adoption and Future Actions

These proposals must be agreed by member states and the European parliament, with the European Commission president urging member states and European parliament members to act fast in support of the proposal.

Should approval be granted, the European Union will reduce its existing tariff-free allowance by forty-seven percent to 18.3m tonnes a annually, a volume last seen in 2013. It will impose a 50% tariff on foreign steel beyond the quota and oblige countries shipping to the bloc to declare the production origin to avoid bypassing of the sanctions.

Exceptions and Global Partnerships

Norway, Iceland, and Liechtenstein will not be subject to tariff quotas or tariffs because of their strong economic ties in the EEA, the EU has confirmed.

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

The European Union must take immediate action, and decisively, before all lights go out in large parts of the European steel sector and its supply networks.