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EU officials have announced plans to match Donald Trump's steel tariffs, effectively doubling levies on foreign steel to 50% in a move described as "a survival risk" to the sector in the UK.

Major Challenge for British Steel Exports

With 80% of UK steel shipments destined for the EU, this policy shift creates the UK steel industry's most severe crisis, as stated by the lobby group representing the sector.

European Commission Proposals and Rules

Through its proposal submitted to the EU legislature this week, the European Commission also proposed cutting the existing quota for tariff-exempt steel and obliging international producers to disclose where the steel was melted and poured to stop Chinese producers sneaking products in through third nations.

The European steel industry faced potential collapse – these measures safeguard it so that investments can be made, reduce emissions, and regain competitiveness.

Overhaul of Current Framework

These measures are designed to replace a import framework that has been functioning for the past seven years and which is due to expire in 2026 and is now seen as not fit for purpose. Inaction could have been "disastrous" for the industry, one EU official stated.

Sector Reaction and Concerns

Nevertheless, industry representatives, from the industry body British Steel, said Brussels increasing duties would create "the most severe challenge the British steel sector has encountered".

There were calls for the UK authorities to "recognise the urgent need to put in place its own measures to protect" the UK steel industry – which is still reeling from a twenty-five percent tariff imposed by the US earlier this year – from the risk of vast quantities of global steel redirected from US and European markets.

This surge in foreign steel "might prove fatal for numerous steel companies.

Union and Political Pressure

Union leaders, assistant general secretary at labor union the industry union, said the new measures represented "an existential threat" to British steel production.

Labor and business representatives urged the UK government to begin talks urgently with the European Union on nation-specific duty-free quotas, pointing out that the UK was now the European Union's primary export market.

Industry Background

Sector representatives in the European Union have also been warning for months that their own industry confronts being "wiped out" through the increased duties on American market shipments combined with high energy costs and cheap Chinese competition.

Steel on both sides of the Channel is described as a essential sector, providing basic materials in products ranging from building frameworks, renewable energy equipment and transport infrastructure to household appliances and cutlery.

Implementation and Next Steps

The new measures require approval by EU nations and the European parliament, with the EU executive head calling on member states and MEPs to move quickly in support of the proposal.

Should approval be granted, the EU will cut its existing tariff-free allowance by 47% to 18.3 million tons a annually, a volume last seen in 2013. It will apply a fifty percent tariff on imports beyond the quota and oblige countries exporting into the EU to declare the production origin to prevent circumvention of the measures.

Exceptions and International Cooperation

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

In addition to these measures, the European Union is pursuing a "metals alliance" with the United States to protect their respective economies from excess production.

The European Union needs to act now, and firmly, prior to all lights go out in large parts of the European steel sector and its value chains.