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The European Union have announced plans to mirror the United States' steel tariffs, effectively doubling levies on imports to fifty percent in a move described as "a critical danger" to the sector in Britain.

Major Challenge for UK Steel Industry

With eighty percent of UK steel shipments destined for the EU, this policy shift creates the British steel sector's biggest ever crisis, according to the industry association speaking for the industry.

New EU Measures and Regulations

In its plan presented to the European parliament this week, the European Commission also proposed reducing the existing quota for duty-free imports and requiring foreign suppliers to declare the origin of steel production to stop China diverting exports through other countries.

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

Replacement of Current Framework

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framework that has been in operation for the last seven years and which is set to expire in 2026 and is now considered outdated.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

Sector Response and Concerns

However, Gareth Stace, from the industry body British Steel, stated EU doubling its tariffs would create "the most severe challenge the UK steel industry has encountered".

He called on the UK authorities to "recognise the critical necessity to put in place its own measures to defend" the UK steel industry – which is affected by a twenty-five percent duty imposed by the US earlier this year – from the risk of millions of tonnes of world steel redirected from US and European markets.

This flood of imports "could be terminal for numerous steel companies.

Labor and Political Calls

Union leaders, assistant general secretary at labor union Community, said the proposed changes posed "a survival risk" to British steel production.

Unions and industry leaders called on Keir Starmer to begin talks urgently with the EU on country-specific duty-free quotas, pointing out that the UK was now the EU's No 1 export market.

Industry Background

Industry leaders in the European Union have also been warning for months that their own industry faces being "eliminated" through the new 50% tariffs on exports to the US combined with rising energy prices and low-cost Chinese imports.

Steel on both sides of the Channel is described as a foundational industry, providing elemental components in products ranging from skyscraper structures, renewable energy equipment and transport infrastructure to household appliances and cutlery.

Adoption and Next Steps

These proposals require approval by EU nations and the EU legislature, with the European Commission president calling on member states and European parliament members to act fast in backing the proposal.

If the plan is ratified, the European Union will cut its current duty-free quota by 47% to 18.3 million tons a year, a volume last seen in 2013. It will impose a fifty percent duty on imports exceeding the limit and require countries shipping to the EU to state where the steel was melted and poured to prevent circumvention of the sanctions.

Exceptions and International Cooperation

Norway, Iceland, and Liechtenstein will be exempt from tariff quotas or duties because of their close trading relationship in the European Economic Area, the European Union has confirmed.

Alongside the proposal, the EU is seeking a "metals alliance" with the United States to ringfence their respective economies from overcapacity.

The European Union needs to act now, and decisively, prior to all lights go out in significant portions of the European steel sector and its supply networks.