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EU officials revealed plans to mirror the United States' steel tariffs, increasing to double taxes on imports to fifty percent in a decision condemned as "a survival risk" to the sector in the UK.

Unprecedented Crisis for British Steel Exports

Given that eighty percent of British exports going to the EU, this policy shift poses the British steel sector's most severe crisis, as stated by the industry association speaking for the sector.

European Commission Proposals and Regulations

Through its proposal submitted to the EU legislature on Tuesday, the EU executive additionally suggested slashing the current allowance for tariff-exempt steel and requiring foreign suppliers to disclose the origin of steel production to prevent China diverting exports through other countries.

EU steel sector faced potential collapse – these measures safeguard it so that investments can be made, reduce emissions, and become competitive again.

Replacement of Existing System

The proposals are designed to replace a import framework that has been functioning for the past seven years and which is due to expire in 2026 and is now considered ineffective. Inaction could have been "fatal" for the industry, a European official said.

Industry Reaction and Warnings

Nevertheless, Gareth Stace, head of the trade association UK Steel, stated Brussels doubling its tariffs would create "the biggest crisis the UK steel industry has encountered".

There were calls for the government to "acknowledge the urgent need to put in place domestic protections to defend" the UK steel industry – which is affected by a twenty-five percent tariff imposed by the US recently – from the risk of millions of tonnes of global steel redirected from American and EU markets.

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

Labor and Political Pressure

Union leaders, assistant general secretary at steelworkers' union Community, said the new measures posed "an existential threat" to British steel production.

Unions and industry leaders called on Keir Starmer to start negotiations immediately with the European Union on country-specific duty-free quotas, pointing out that the UK was now the European Union's No 1 trading partner.

Industry Background

Industry leaders in the EU have also been warning for months that their own industry confronts being "wiped out" through the increased duties on American market shipments combined with rising energy prices and low-cost Chinese imports.

The steel industry on both sides of the Channel is considered a foundational industry, providing basic materials in everything from building frameworks, wind turbines and transport infrastructure to household appliances and kitchenware.

Implementation and Future Actions

The new measures require approval by member states and the EU legislature, with the EU executive head calling on member states and European parliament members to act fast in support of the initiative.

Should approval be granted, the European Union will reduce its current duty-free quota by forty-seven percent to 18.3m tonnes a annually, a level last seen 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 prevent circumvention of the sanctions.

Exemptions and Global Partnerships

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

Alongside the proposal, the EU is seeking a "steel partnership" with the United States to ringfence their national industries from overcapacity.

EU must take immediate action, and firmly, before all lights go out in significant portions of the European steel sector and its supply networks.