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EU officials have announced they will mirror the United States' steel tariffs, effectively doubling levies on foreign steel to fifty percent in a action described as "an existential threat" to the industry in Britain.

Unprecedented Crisis for British Steel Industry

Given that eighty percent of UK steel shipments going to the EU, this change represents the UK steel industry's most severe crisis, as stated by the lobby group representing the sector.

European Commission Measures and Rules

Through its proposal submitted to the EU legislature this week, the European Commission additionally suggested cutting the existing quota for tariff-exempt steel and obliging international producers to disclose the origin of steel production to prevent China diverting exports through third nations.

EU steel sector was on the verge of collapse – these measures safeguard it so that investments can be made, decarbonise, and become competitive again.

Overhaul of Existing System

The proposals are designed to replace a quota system that has been in operation for the past seven years and which is due to expire in 2026 and is now seen as ineffective. Inaction could have been "catastrophic" for the industry, one EU official stated.

Sector Reaction and Warnings

However, Gareth Stace, head of the trade association UK Steel, stated Brussels increasing duties would pose "the most severe challenge the British steel sector has ever faced".

He called on the UK authorities to "recognise the critical necessity to put in place domestic protections to defend" the British steel sector – which is affected by a 25% duty imposed by Trump recently – from the risk of millions of tonnes of world steel diverted away from US and European markets.

This surge in foreign steel "might prove terminal for many of our remaining steel companies.

Labor and Government Calls

Alasdair McDiarmid, representative at labor union Community, stated the new measures posed "an existential threat" to British steel production.

Labor and business representatives urged the UK government to start negotiations immediately with the EU on country-specific tariff exemptions, noting that the UK was now the EU's primary export market.

Broader Context

Sector representatives in the European Union have also been warning for months that their own industry confronts being "wiped out" through the increased duties on exports to the US combined with rising energy prices and low-cost Chinese imports.

The steel industry on in both the UK and EU is considered a essential sector, providing elemental components in everything from skyscraper structures, renewable energy equipment and railways to dishwashers and cutlery.

Implementation and Future Actions

The new measures must be agreed by EU nations and the European parliament, with the European Commission president calling on member states and MEPs to move quickly in support of the initiative.

If the plan is ratified, the EU will reduce its existing tariff-free allowance by forty-seven percent to 18.3m tonnes a annually, a volume last seen in 2013. It will apply a 50% duty on foreign steel beyond the quota and oblige nations shipping to the bloc to declare the production origin to prevent circumvention of the measures.

Exemptions and Global Partnerships

These European nations will be exempt from import limits or duties because of their close trading relationship in the EEA, the European Union has confirmed.

Alongside the proposal, the European Union is seeking a "metals alliance" with the United States to ringfence their national industries from excess production.

EU needs to act now, and decisively, prior to operations cease in significant portions of the EU steel industry and its value chains.