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The European Union have announced plans to match the United States' import duties on steel, effectively doubling taxes on imports to 50% in a action condemned as "a critical danger" to the industry in Britain.

Major Challenge for British Steel Industry

With 80% of British exports destined for the European Union, this policy shift creates the UK steel industry's biggest ever challenge, according to the industry association representing the industry.

European Commission Proposals and Regulations

In its plan submitted to the European parliament this week, the European Commission additionally suggested slashing the current allowance for duty-free imports and requiring foreign suppliers to disclose the origin of steel production to stop China sneaking products in through third nations.

The European steel industry was on the verge of collapse – we are protecting it so that investments can be made, reduce emissions, and regain competitiveness.

Replacement of Current Framework

These measures are designed to supersede 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 ineffective. Inaction could have been "catastrophic" for the industry, a European official said.

Sector Reaction and Concerns

Nevertheless, Gareth Stace, head of the industry body British Steel, stated Brussels doubling its tariffs would create "the most severe challenge the British steel sector has encountered".

There were calls for the UK authorities to "acknowledge the critical necessity to implement domestic protections to defend" the British steel sector – which is affected by a twenty-five percent duty imposed by Trump recently – from the threat of vast quantities of global steel diverted away from American and EU markets.

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

Union and Government Pressure

Alasdair McDiarmid, assistant general secretary at steelworkers' union the industry union, said the proposed changes represented "an existential threat" to UK steel.

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

Industry Background

Industry leaders in the EU have repeatedly cautioned for several months that the European steel sector confronts being "wiped out" through the new 50% tariffs on exports to the US along with high energy costs and low-cost Chinese imports.

Steel on in both the UK and EU is considered a foundational industry, providing basic materials in products ranging from skyscraper structures, renewable energy equipment and railways to dishwashers and cutlery.

Adoption and Future Actions

The new measures must be agreed by member states and the EU legislature, with the EU executive head calling on member states and MEPs to act fast in support of the proposal.

Should approval be granted, the EU will cut its existing tariff-free allowance by forty-seven percent to 18.3m tonnes a year, a level previously recorded in 2013. It will impose a fifty percent tariff on foreign steel exceeding the limit and require countries exporting into the EU to state where the steel was melted and poured to avoid bypassing of the sanctions.

Exceptions and International Cooperation

Norway, Iceland, and Liechtenstein will not be subject to tariff quotas or tariffs because of their strong economic ties in the European Economic Area, the European Union has said.

Alongside the proposal, the European Union is pursuing a "metals alliance" with the United States to protect their national industries from overcapacity.

The European Union must take immediate action, and firmly, before operations cease in significant portions of the European steel sector and its supply networks.