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EU officials revealed they will mirror the United States' import duties on steel, increasing to double taxes on foreign steel to fifty percent in a move condemned as "a critical danger" to the industry in the UK.

Unprecedented Crisis for UK Steel Industry

Given that eighty percent of British exports destined for the EU, this change represents the UK steel industry's biggest ever crisis, as stated by the industry association representing the industry.

New EU Proposals and Regulations

Through its proposal presented to the European parliament this week, the European Commission additionally suggested cutting the existing quota for duty-free imports and obliging foreign suppliers to disclose the origin of steel production to prevent China diverting exports through third nations.

The European steel industry was on the verge of collapse – these measures safeguard it so that it can invest, reduce emissions, and regain competitiveness.

Replacement of Existing System

These measures are intended to replace a import framework that has been functioning for the last seven years and which is set to expire in 2026 and is now considered outdated. To do nothing could have been "disastrous" for the sector, a European official stated.

Sector Response and Concerns

Nevertheless, industry representatives, from the industry body UK Steel, stated Brussels doubling its tariffs would create "the biggest crisis the UK steel industry has ever faced".

There were calls for the UK authorities to "recognise the critical necessity to implement its own measures to defend" the UK steel industry – which is affected by a 25% tariff from Trump earlier this year – from the threat of vast quantities of world steel diverted away from US and European markets.

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

Labor and Political Pressure

Alasdair McDiarmid, representative at steelworkers' 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 begin talks urgently with the European Union on country-specific duty-free quotas, noting that the United Kingdom was now the European Union's No 1 export market.

Industry Background

Sector representatives in the European Union have also been warning for several months that their own industry confronts being "eliminated" through the new 50% tariffs on exports to the US along with high energy costs and cheap Chinese competition.

The steel industry on in both the UK and EU is described as a foundational industry, providing elemental components in products ranging from building frameworks, wind turbines and transport infrastructure to dishwashers and cutlery.

Adoption and Next Steps

The new measures require approval by member states and the European parliament, with the European Commission president calling on national governments and European parliament members to move quickly in support of the initiative.

Should approval be granted, the EU will cut its existing tariff-free allowance by 47% to 18.3 million tons a annually, a level last seen in 2013. It will impose a 50% tariff on foreign steel 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

These European nations will not be subject to import limits or tariffs due to their strong economic ties in the European Economic Area, the European Union has confirmed.

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

EU must take immediate action, and decisively, before operations cease in significant portions of the EU steel industry and its supply networks.