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EU officials revealed they will mirror the United States' import duties on steel, increasing to double taxes on foreign steel to 50% in a decision condemned as "a critical danger" to the sector in the UK.

Major Challenge for British Steel Industry

With eighty percent of UK steel shipments going to the European Union, this policy shift represents the UK steel industry's most severe crisis, as stated by the lobby group speaking for the sector.

European Commission Proposals and Rules

In its plan presented to the EU legislature on Tuesday, the European Commission additionally suggested reducing the existing quota for tariff-exempt steel and obliging international producers to state the origin of steel production to prevent China sneaking products in through third nations.

EU steel sector stood at the brink of failure – 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 quota system that has been in operation for the last seven years and which is due to expire in 2026 and is now considered not fit for purpose. To do nothing could have been "disastrous" for the sector, one EU official stated.

Industry Response and Warnings

Nevertheless, industry representatives, head of the industry body UK Steel, said Brussels increasing duties would pose "the most severe challenge the British steel sector has ever faced".

There were calls for the UK authorities to "acknowledge the urgent need to implement domestic protections to protect" the British steel sector – which is still reeling from a 25% tariff imposed by Trump earlier this year – from the threat of vast quantities of world steel redirected from American and EU markets.

This flood of imports "could be fatal for many of our remaining steel companies.

Labor and Political Calls

Alasdair McDiarmid, assistant general secretary at labor union the industry union, stated the proposed changes posed "an existential threat" to British steel production.

Labor and business representatives called on Keir Starmer to begin talks immediately with the EU on nation-specific duty-free quotas, noting that the UK was now the European Union's No 1 trading partner.

Industry Background

Industry leaders in the EU have repeatedly cautioned for several 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 low-cost Chinese imports.

The steel industry on in both the UK and EU is considered a essential sector, supplying basic materials in products ranging from skyscraper structures, renewable energy equipment and transport infrastructure to dishwashers and kitchenware.

Adoption and Next Steps

The new measures must be agreed by EU nations and the EU legislature, with the EU executive head urging national governments and European parliament members to move quickly in backing the initiative.

If the plan is ratified, the EU will cut its existing tariff-free allowance by 47% to 18.3 million tons a year, a volume last seen in 2013. It will apply a fifty percent tariff on imports beyond the quota and oblige countries exporting into the bloc to declare the production origin to avoid bypassing of the sanctions.

Exemptions and International Cooperation

Norway, Iceland, and Liechtenstein will be exempt from import limits or duties because of their close trading relationship in the EEA, the EU has confirmed.

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

The European Union needs to act now, and firmly, prior to operations cease in significant portions of the European steel sector and its value chains.