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EU officials revealed plans to match Donald Trump's steel tariffs, effectively doubling taxes on foreign steel to fifty percent in a action condemned as "a critical danger" to the sector in the UK.

Unprecedented Crisis for British Steel Exports

Given that 80% of UK steel shipments destined for the European Union, this policy shift poses the UK steel industry's biggest ever challenge, as stated by the lobby group speaking for the sector.

European Commission Measures and Regulations

Through its proposal presented to the EU legislature this week, the European Commission additionally suggested cutting the existing quota for tariff-exempt steel and requiring international producers to disclose the origin of steel production to stop China sneaking products in through third nations.

EU steel sector was on the verge of collapse – we are protecting it so that it can invest, decarbonise, and regain competitiveness.

Replacement of Existing System

These measures are designed to supersede a quota system that has been in operation for the last seven years and which is due to expire in 2026 and is now seen as outdated. Inaction could have been "catastrophic" for the industry, a European official stated.

Sector Reaction and Warnings

Nevertheless, industry representatives, head of the trade association British Steel, said EU doubling its tariffs would pose "the biggest crisis the UK steel industry has ever faced".

There were calls for the government to "recognise the urgent need to implement domestic protections to protect" the British steel sector – which is affected by a twenty-five percent duty imposed by Trump recently – from the risk of millions of tonnes of world steel diverted away from American and EU markets.

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

Labor and Government Pressure

Alasdair McDiarmid, assistant general secretary at steelworkers' union Community, stated the proposed changes represented "a survival risk" to British steel production.

Unions and industry leaders called on the UK government to start negotiations urgently with the EU on nation-specific tariff exemptions, pointing out that the UK was now the EU's No 1 trading partner.

Broader Context

Industry leaders in the European Union 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 rising energy prices and low-cost Chinese imports.

The steel industry on both sides of the Channel is considered a essential sector, providing basic materials in products ranging from building frameworks, renewable energy equipment and transport infrastructure to dishwashers and cutlery.

Implementation and Next Steps

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

If the plan is ratified, the European Union will reduce its current duty-free quota by 47% to 18.3m tonnes a year, a volume last seen in 2013. It will impose a fifty percent tariff on imports exceeding the limit and require countries exporting into the EU to declare where the steel was melted and poured to avoid bypassing of the measures.

Exemptions and Global Partnerships

Norway, Iceland, and Liechtenstein will not be subject to import limits or duties due to their close trading relationship in the EEA, the EU has confirmed.

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

The European Union needs to act now, and firmly, before all lights go out in significant portions of the European steel sector and its value chains.