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EU officials have announced they will mirror Donald Trump's steel tariffs, effectively doubling taxes on foreign steel to 50% in a action described as "an existential threat" to the sector in Britain.

Major Challenge for British Steel Industry

Given that 80% of British exports destined for the EU, this change creates the British steel sector's most severe crisis, as stated by the lobby group speaking for the industry.

New EU Proposals and Regulations

In its plan presented to the European parliament this week, the European Commission also proposed reducing the current allowance for tariff-exempt steel and requiring foreign suppliers to declare where the steel was melted and poured to stop China sneaking products in through third nations.

The European steel industry stood at the brink of failure – we are protecting it so that investments can be made, decarbonise, and regain competitiveness.

Overhaul of Existing System

These measures are designed to replace a quota system that has been functioning for the last seven years and which is due to expire in 2026 and is now seen as not fit for purpose. To do nothing could have been "catastrophic" for the industry, a European official stated.

Industry Response and Concerns

However, industry representatives, from the industry body UK Steel, said EU doubling its tariffs would create "the biggest crisis the British steel sector has ever faced".

He called on the UK authorities to "acknowledge the critical necessity to put in place domestic protections to protect" the UK steel industry – which is still reeling from a twenty-five percent tariff imposed by Trump recently – from the threat of millions of tonnes of world steel diverted away from American and EU markets.

This surge in foreign steel "might prove fatal for many of our remaining steel companies.

Labor and Political Calls

Union leaders, assistant general secretary at labor union the industry union, stated the new measures posed "a survival risk" to UK steel.

Labor and business representatives called on Keir Starmer to start negotiations immediately with the European Union on country-specific tariff exemptions, noting that the United Kingdom was now the European Union's primary trading partner.

Industry Background

Industry leaders in the EU have also been warning for months that the European steel sector confronts being "eliminated" through the increased duties on American market shipments along with high energy costs and low-cost Chinese imports.

Steel on in both the UK and EU is considered a essential sector, supplying basic materials in everything from building frameworks, renewable energy equipment and railways to dishwashers and cutlery.

Implementation and Future Actions

The new measures must be agreed by EU nations and the EU legislature, with the EU executive head calling on member states and European parliament members to move quickly in support of the proposal.

If the plan is ratified, the European Union will reduce its existing tariff-free allowance by forty-seven percent to 18.3 million tons a annually, a volume previously recorded in 2013. It will apply a 50% duty on imports exceeding the limit and oblige countries exporting into the EU to declare the production origin to prevent circumvention of the sanctions.

Exceptions and Global Partnerships

These European nations will not be subject to tariff quotas or duties due to their strong economic ties in the European Economic Area, the European Union has confirmed.

Alongside the proposal, the EU is pursuing a "steel partnership" with the United States to ringfence their national industries from overcapacity.

The European Union must take immediate action, and decisively, prior to operations cease in large parts of the European steel sector and its value chains.