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EU officials revealed they will match Donald Trump's import duties on steel, effectively doubling levies on imports to fifty percent in a move condemned as "a survival risk" to the industry in the UK.

Major Challenge for British Steel Industry

Given that 80% of UK steel shipments destined for the European Union, this policy shift creates the UK steel industry's largest crisis, as stated by the industry association speaking for the sector.

European Commission Proposals and Regulations

In its plan presented to the European parliament this week, the EU executive additionally suggested reducing the current allowance for tariff-exempt steel and obliging international producers to disclose where the steel was melted and poured to stop Chinese producers sneaking products in through third nations.

The European steel industry faced potential collapse – these measures safeguard it so that it can invest, reduce emissions, and become competitive again.

Overhaul of Current Framework

These measures are intended to replace a import framework that has been in operation for the last seven years and which is set to expire in 2026 and is now considered ineffective. To do nothing could have been "fatal" for the sector, one EU official stated.

Sector Response and Concerns

However, Gareth Stace, head of the trade association UK Steel, said EU doubling its tariffs would create "the biggest crisis the UK steel industry has encountered".

He called on the government to "acknowledge the critical necessity to put in place its own measures to protect" the UK steel industry – which is still reeling from a 25% tariff imposed by the US recently – from the threat of vast quantities of world steel diverted away from US and European markets.

This surge in foreign steel "could be fatal for many of our remaining steel companies.

Labor and Political Calls

Union leaders, representative at labor union the industry union, stated the proposed changes represented "an existential threat" to UK steel.

Labor and business representatives called on the UK government to start negotiations immediately with the European Union on country-specific tariff exemptions, pointing out that the United Kingdom was now the European Union's No 1 export market.

Broader Context

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

The steel industry on in both the UK and EU is described as a essential sector, providing elemental components in everything from building frameworks, renewable energy equipment and transport infrastructure to household appliances and kitchenware.

Implementation and Next Steps

These proposals require approval by EU nations and the European parliament, with the EU executive head calling on member states and MEPs 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 previously recorded in 2013. It will impose a 50% tariff on foreign steel beyond the quota and require countries shipping to the bloc to state where the steel was melted and poured to avoid bypassing of the sanctions.

Exemptions and International Cooperation

Norway, Iceland, and Liechtenstein will not be subject to import limits or tariffs due to their close trading relationship in the EEA, the European Union has confirmed.

Alongside the proposal, the European Union is pursuing a "metals alliance" with the US to protect their national industries from excess production.

The European Union needs to act now, and firmly, prior to all lights go out in large parts of the European steel sector and its value chains.