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The European Union declared they will match 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 British Steel Industry

With eighty percent of British exports destined for the European Union, this policy shift poses the British steel sector's biggest ever crisis, as stated by the industry association speaking for the sector.

European Commission Proposals and Rules

Through its proposal submitted to the EU legislature this week, the EU executive additionally suggested cutting the current allowance for tariff-exempt steel and requiring international producers to disclose the origin of steel production to stop China sneaking products in through third nations.

The European steel industry stood at the brink of failure – we are protecting it so that it can invest, reduce emissions, and regain competitiveness.

Overhaul of Current Framework

These measures are designed to supersede a quota system that has been in operation for the last seven years and which is set to expire in 2026 and is now considered outdated. To do nothing could have been "disastrous" for the sector, one EU official stated.

Industry Response and Warnings

Nevertheless, industry representatives, head of the trade association British Steel, said Brussels doubling its tariffs would create "the biggest crisis the British steel sector has encountered".

There were calls for the government to "recognise the critical necessity to implement domestic protections to protect" the British steel sector – which is affected by a 25% tariff imposed by Trump recently – from the threat of vast quantities of global steel redirected from US and European markets.

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

Labor and Government Pressure

Union leaders, assistant general secretary at steelworkers' union the industry union, stated the new measures represented "an existential threat" to British steel production.

Unions and industry leaders called on the UK government to begin talks urgently with the EU on nation-specific duty-free quotas, noting that the UK was now the EU's primary export market.

Industry Background

Industry leaders 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 along with high energy costs and cheap Chinese competition.

Steel on both sides of the Channel is described as a essential sector, supplying basic materials in everything from building frameworks, wind turbines and railways to household appliances and cutlery.

Adoption and Next Steps

The new measures must be agreed by EU nations and the European parliament, with the European Commission president calling on national governments and European parliament members to act fast in backing the proposal.

If the plan is ratified, the EU will cut its existing tariff-free allowance by 47% to 18.3m tonnes a annually, a level previously recorded in 2013. It will apply a 50% tariff on foreign steel beyond the quota and require nations exporting into the bloc to state where the steel was melted and poured to avoid bypassing of the sanctions.

Exceptions and International Cooperation

These European nations will be exempt from import limits or duties due to their strong economic ties in the European Economic Area, the EU has said.

In addition to these measures, the European Union is seeking a "steel partnership" with the US to protect their national industries from excess production.

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