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EU officials have announced plans to match Donald Trump's steel tariffs, increasing to double taxes on foreign steel to fifty percent in a decision condemned as "a survival risk" to the sector in the UK.

Major Challenge for UK Steel Industry

Given that eighty percent of UK steel shipments going to the European Union, this change represents the British steel sector's most severe crisis, as stated by the industry association speaking for the industry.

New EU Measures and Regulations

Through its proposal submitted to the EU legislature this week, the European Commission additionally suggested reducing the existing quota for duty-free imports and obliging foreign suppliers to disclose the origin of steel production to stop Chinese producers diverting exports through third nations.

The European steel industry was on the verge of collapse – we are protecting it so that it can invest, reduce emissions, and become competitive again.

Replacement of Current Framework

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quota system that has been in operation for the past seven years and which is due to expire in 2026 and is now seen as outdated. To do nothing could have been "catastrophic" for the sector, a European official stated.

Sector Reaction and Warnings

However, Gareth Stace, from the trade association British Steel, stated Brussels increasing duties would create "the biggest crisis the UK steel industry 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 twenty-five percent duty imposed by Trump recently – from the risk of vast quantities of global steel redirected from American and EU markets.

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

Union and Government Calls

Union leaders, representative at labor union the industry union, stated the new measures represented "a survival risk" to UK steel.

Labor and business representatives urged the UK government to start negotiations urgently with the European Union on country-specific tariff exemptions, pointing out that the UK was now the EU's No 1 trading partner.

Industry Background

Industry leaders in the EU have also been warning for months that the European steel sector faces being "wiped out" 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, supplying basic materials in products ranging 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 urging member states and MEPs to move quickly in support of the proposal.

Should approval be granted, the European Union will cut its current duty-free quota by forty-seven percent to 18.3 million tons a annually, a volume previously recorded in 2013. It will impose a 50% duty on foreign steel beyond the quota and oblige nations shipping to the bloc to state where the steel was melted and poured to avoid bypassing of the measures.

Exceptions and Global Partnerships

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

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

EU needs to act now, and firmly, before all lights go out in significant portions of the EU steel industry and its supply networks.