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The European Union have announced they will mirror the United States' import duties on steel, effectively doubling taxes on imports to fifty percent in a move described as "a critical danger" to the industry in the UK.

Unprecedented Crisis for UK Steel Exports

Given that eighty percent of UK steel shipments going to the EU, this policy shift poses the British steel sector's largest challenge, as stated by the industry association speaking for the industry.

European Commission Proposals and Rules

In its plan submitted to the EU legislature on Tuesday, the European Commission also proposed cutting the current allowance for tariff-exempt steel and requiring foreign suppliers to disclose the origin of steel production to stop Chinese producers sneaking products in through third nations.

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

Overhaul of Current Framework

These measures are intended 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 seen as ineffective. Inaction could have been "disastrous" for the sector, one EU official stated.

Industry Response and Concerns

However, industry representatives, from the industry body British Steel, stated Brussels doubling its tariffs would create "the biggest crisis the UK steel industry has encountered".

There were calls for the UK authorities to "recognise the critical necessity to put in place domestic protections to protect" the British steel sector – which is still reeling from a twenty-five percent tariff from the US recently – from the risk of vast quantities of global steel diverted away from US and European markets.

This flood of imports "might prove fatal for many of our remaining steel companies.

Labor and Government Pressure

Union leaders, representative at steelworkers' union Community, said the new measures posed "a survival risk" to British steel production.

Unions and industry leaders urged the UK government to begin talks immediately with the European Union on country-specific tariff exemptions, pointing out that the UK was now the EU's primary export market.

Broader Context

Sector representatives in the European Union have repeatedly cautioned for months that their own industry confronts being "wiped out" through the new 50% tariffs on exports to the US combined with high energy costs and low-cost Chinese imports.

The steel industry on in both the UK and EU is considered a foundational industry, supplying elemental components in products ranging from skyscraper structures, renewable energy equipment and transport infrastructure to dishwashers and cutlery.

Adoption and Future Actions

These proposals must be agreed by EU nations and the EU legislature, with the European Commission president urging member states and MEPs to move quickly in backing the proposal.

If the plan is ratified, the European Union will reduce its existing tariff-free allowance by forty-seven percent to 18.3 million tons a year, a volume last seen in 2013. It will apply a fifty percent tariff on foreign steel exceeding the limit and require countries shipping to the EU to declare the production origin to prevent circumvention of the sanctions.

Exemptions and Global Partnerships

Norway, Iceland, and Liechtenstein will be exempt from import limits or duties 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 United States to ringfence their national industries from overcapacity.

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