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EU officials revealed plans to match Donald Trump's import duties on steel, increasing to double levies on imports to fifty percent in a action condemned as "a survival risk" to the sector in the UK.

Unprecedented Crisis for UK Steel Industry

Given that eighty percent of British exports going to the EU, this change creates the British steel sector's biggest ever challenge, according to the industry association speaking for the industry.

European Commission Proposals and Regulations

In its plan presented to the EU legislature this week, the EU executive additionally suggested reducing the existing quota for duty-free imports and requiring international producers to declare where the steel was melted and poured to stop China diverting exports through other countries.

The European steel industry stood at the brink of failure – these measures safeguard it so that it can invest, decarbonise, and become competitive again.

Overhaul of Existing System

The proposals 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framework that has been in operation for the last seven years and which is set to expire in 2026 and is now seen as outdated. Inaction could have been "fatal" for the sector, one EU official said.

Industry Reaction and Warnings

However, industry representatives, head of the trade association UK Steel, said Brussels increasing duties would pose "the most severe challenge the British steel sector has encountered".

There were calls for the UK authorities to "recognise the critical necessity to implement its own measures to protect" the British steel sector – which is still reeling from a 25% tariff imposed by the US recently – from the risk of millions of tonnes of world steel redirected from American and EU markets.

This flood of imports "could be fatal for numerous steel companies.

Union and Government Calls

Union leaders, representative at labor union Community, stated the proposed changes posed "a survival risk" to British steel production.

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

Broader Context

Sector representatives in the European Union have repeatedly cautioned for months that the European steel sector confronts being "eliminated" through the new 50% tariffs on American market shipments along with high energy costs and low-cost Chinese imports.

Steel on both sides of the Channel is considered a essential sector, supplying basic materials in everything from building frameworks, renewable energy equipment and railways to household appliances and kitchenware.

Implementation and Future Actions

These proposals require approval by EU nations and the European parliament, with the EU executive head urging national governments and MEPs to act fast in backing the proposal.

If the plan is ratified, the EU will cut its current duty-free quota by 47% to 18.3m tonnes a year, a volume last seen in 2013. It will impose a 50% tariff on foreign steel beyond the quota and require countries shipping to the EU to state where the steel was melted and poured to avoid bypassing of the measures.

Exceptions and International Cooperation

These European nations will not be subject to import limits or tariffs due to their strong economic ties in the EEA, the EU has said.

Alongside the proposal, the EU is seeking a "metals alliance" with the US to ringfence their respective economies from overcapacity.

EU needs to act now, and decisively, before operations cease in large parts of the EU steel industry and its supply networks.