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EU officials have announced plans to mirror the United States' steel tariffs, effectively doubling levies on foreign steel to 50% in a decision described as "a survival risk" to the sector in the UK.

Unprecedented Crisis for UK Steel Industry

With 80% of UK steel shipments destined for the EU, this policy shift represents the UK steel industry's most severe challenge, according to the industry association speaking for the sector.

European Commission Proposals and Regulations

In its plan presented to the EU legislature this week, the European Commission also proposed slashing the current allowance for duty-free imports and requiring international producers to state where the steel was melted and poured to stop China sneaking products in through other countries.

The European steel industry faced potential collapse – these measures safeguard it so that it can invest, reduce emissions, and become competitive again.

Overhaul of Existing System

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

Sector Response and Concerns

However, Gareth Stace, head of the trade association British Steel, said Brussels increasing duties would pose "the biggest crisis the UK steel industry has encountered".

He called on the UK authorities to "recognise the urgent need to implement domestic protections to protect" the British steel sector – which is still reeling from a 25% tariff from Trump recently – from the threat of vast quantities of world steel redirected from American and EU markets.

This surge in foreign steel "could be terminal for many of our remaining steel companies.

Labor and Government Calls

Union leaders, assistant general secretary at steelworkers' union Community, stated the proposed changes posed "an existential threat" to British steel production.

Labor and business representatives called on the UK government to begin talks immediately with the European Union on country-specific duty-free quotas, noting that the United Kingdom was now the EU's No 1 trading partner.

Industry Background

Industry leaders in the European Union have also been warning for several months that the European steel sector confronts being "eliminated" through the new 50% tariffs on exports to the US combined with high energy costs and low-cost Chinese imports.

Steel on in both the UK and EU is considered a foundational industry, supplying elemental components in everything from building frameworks, renewable energy equipment and railways to household appliances and cutlery.

Implementation and Future Actions

These proposals require approval by EU nations and the EU legislature, with the EU executive head urging member states and European parliament members to move quickly in backing the proposal.

If the plan is ratified, the EU will reduce its current duty-free quota by 47% to 18.3m tonnes a year, a level previously recorded in 2013. It will apply a fifty percent duty on foreign steel exceeding the limit and require nations exporting into the EU to state the production origin to prevent circumvention of the measures.

Exceptions and Global Partnerships

These European nations will not be subject to import limits or duties because of their close trading relationship in the European Economic Area, the EU has confirmed.

In addition to these measures, the EU is seeking a "metals alliance" with the United States to ringfence their respective economies from overcapacity.

The European Union needs to act now, and decisively, before operations cease in significant portions of the European steel sector and its value chains.