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The European Union declared they will match the United States' import duties on steel, effectively doubling levies on imports to 50% in a action described as "a survival risk" to the industry in Britain.

Unprecedented Crisis for British Steel Industry

Given that eighty percent of UK steel shipments destined for the EU, this change creates the UK steel industry's biggest ever challenge, as stated by the industry association representing the industry.

New EU Proposals and Regulations

In its plan presented to the European parliament this week, the European Commission also proposed slashing the current allowance for tariff-exempt steel and requiring international producers to state where the steel was melted and poured to prevent China sneaking products in through other countries.

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

Replacement of Existing System

The proposals are designed to replace a quota system that has been functioning for the past seven years and which is set to expire in 2026 and is now considered outdated. To do nothing could have been "disastrous" for the industry, one EU official said.

Sector Reaction and Warnings

Nevertheless, industry representatives, head of the industry body UK Steel, stated EU doubling its tariffs would create "the biggest crisis the British steel sector has encountered".

There were calls for the government to "recognise the urgent need to put in place its own measures to defend" the UK steel industry – which is still reeling from a twenty-five percent duty from Trump earlier this year – from the risk of vast quantities of global steel diverted away from US and European markets.

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

Labor and Political Pressure

Alasdair McDiarmid, representative at steelworkers' union the industry union, stated the new measures represented "an existential threat" to UK steel.

Labor and business representatives urged the UK government to begin talks urgently with the European Union on country-specific duty-free quotas, noting that the UK was now the European Union's No 1 export market.

Broader Context

Sector representatives in the EU have also been warning for months that their own industry confronts being "wiped out" through the new 50% tariffs on exports to the US along with rising energy prices and low-cost Chinese imports.

Steel on in both the UK and EU is considered a foundational industry, supplying basic materials in everything from building frameworks, renewable energy equipment and railways to dishwashers and cutlery.

Implementation and Future Actions

These proposals require approval by EU nations and the EU legislature, with the EU executive head calling on national governments and European parliament members to act fast in support of the proposal.

Should approval be granted, the EU will reduce its existing tariff-free allowance by 47% to 18.3 million tons a annually, a volume previously recorded in 2013. It will impose a 50% tariff on imports exceeding the limit and oblige nations exporting into the EU to declare the production origin to avoid bypassing of the measures.

Exceptions and Global Partnerships

These European nations will not be subject to tariff quotas or duties due to their close trading relationship in the European Economic Area, the EU has said.

Alongside the proposal, the European Union is seeking a "steel partnership" with the US to protect their national industries from excess production.

The European Union must take immediate action, and firmly, prior to operations cease in large parts of the EU steel industry and its value chains.