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The European Union declared they will match the United States' import duties on steel, effectively doubling levies on imports to fifty percent in a decision condemned as "a survival risk" to the industry in Britain.

Major Challenge for British Steel Industry

With eighty percent of British exports destined for the European Union, this change creates the British steel sector's largest crisis, according to the lobby group speaking for the sector.

New EU Proposals and Regulations

Through its proposal presented to the EU legislature on Tuesday, the European Commission additionally suggested cutting the existing quota for duty-free imports and obliging international producers to declare where the steel was melted and poured to prevent Chinese producers diverting exports through other countries.

The European steel industry was on the verge of collapse – we are protecting it so that investments can be made, decarbonise, and regain competitiveness.

Replacement of Current Framework

The proposals are designed to supersede a quota system that has been functioning for the past seven years and which is due to expire in 2026 and is now considered ineffective. Inaction could have been "disastrous" for the industry, a European official stated.

Industry Reaction and Warnings

However, industry representatives, from the industry body British Steel, stated EU increasing duties would create "the most severe challenge the British steel sector has encountered".

He called on the government to "recognise the critical necessity to put in place its own measures to defend" the UK steel industry – which is affected by a 25% tariff from Trump earlier this year – from the risk of millions of tonnes of global steel diverted away from US and European markets.

This flood of imports "might prove fatal for many of our remaining steel companies.

Labor and Political Pressure

Alasdair McDiarmid, assistant general secretary at steelworkers' union the industry union, stated the new measures posed "a survival risk" to British steel production.

Unions and industry leaders called on the UK government to start negotiations immediately with the European Union on nation-specific tariff exemptions, noting that the UK was now the EU's No 1 export market.

Industry Background

Industry leaders in the EU have repeatedly cautioned for months that the European steel sector confronts being "wiped out" through the new 50% tariffs on exports to the US combined with rising energy prices and low-cost Chinese imports.

The steel industry on both sides of the Channel is described as a essential sector, supplying basic materials in products ranging from skyscraper structures, renewable energy equipment and transport infrastructure to dishwashers and cutlery.

Implementation and Next Steps

These proposals require approval by EU nations and the European parliament, with the European Commission president urging member states and MEPs to move quickly in support of the initiative.

If the plan is ratified, the European Union will cut its existing tariff-free allowance by forty-seven percent to 18.3m tonnes a year, a level previously recorded in 2013. It will apply a fifty percent duty on foreign steel beyond the quota and require nations shipping to the EU to state where the steel was melted and poured to prevent circumvention of the measures.

Exceptions and Global Partnerships

Norway, Iceland, and Liechtenstein will not be subject to tariff quotas or tariffs due to their close trading relationship in the EEA, the EU has confirmed.

In addition to these measures, the EU is seeking a "metals alliance" with the US to protect their respective economies from excess production.

The European Union must take immediate action, and decisively, before all lights go out in significant portions of the EU steel industry and its value chains.