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EU officials revealed they will mirror Donald Trump's steel tariffs, effectively doubling levies on imports to 50% in a move condemned as "a critical danger" to the industry in Britain.

Unprecedented Crisis for UK Steel Industry

Given that eighty percent of UK steel shipments destined for the European Union, this change poses the British steel sector's most severe crisis, as stated by the lobby group speaking for the sector.

New EU Measures and Rules

Through its proposal submitted to the European parliament on Tuesday, the European Commission additionally suggested cutting the current allowance for tariff-exempt steel and requiring foreign suppliers to state the origin of steel production to stop Chinese producers sneaking products in through other countries.

EU steel sector stood at the brink of failure – we are protecting it so that investments can be made, reduce emissions, and regain competitiveness.

Replacement of Current Framework

These measures are designed to supersede a import framework that has been functioning for the last seven years and which is due to expire in 2026 and is now considered not fit for purpose. Inaction could have been "catastrophic" for the industry, a European official stated.

Industry Reaction and Concerns

However, industry representatives, head of the trade association UK Steel, said Brussels increasing duties would pose "the most severe challenge the UK steel industry has ever faced".

He called on the government to "recognise the critical necessity to put in place its own measures to defend" the British steel sector – which is still reeling from a twenty-five percent duty imposed by the US recently – from the risk of vast quantities of world steel redirected from US and European markets.

This surge in foreign steel "could be fatal for many of our remaining steel companies.

Union and Political Calls

Alasdair McDiarmid, representative at steelworkers' union the industry union, said the proposed changes posed "a survival risk" to UK steel.

Labor and business representatives called on Keir Starmer to start negotiations urgently with the European Union on country-specific tariff exemptions, pointing out that the United Kingdom was now the EU's primary trading partner.

Industry Background

Sector representatives in the EU have also been warning for several months that their own industry confronts being "eliminated" through the new 50% tariffs 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 described as a foundational industry, providing basic materials in products ranging from building frameworks, wind turbines and transport infrastructure to dishwashers and kitchenware.

Adoption and Future Actions

These proposals must be agreed by EU nations and the European parliament, with the European Commission president urging national governments and MEPs to move quickly in backing the proposal.

Should approval be granted, the EU will cut its existing tariff-free allowance by 47% to 18.3 million tons a annually, a level previously recorded in 2013. It will impose a 50% tariff on imports beyond the quota and require nations exporting into the EU to declare the production origin to prevent circumvention of the measures.

Exceptions and Global Partnerships

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

Alongside the proposal, the EU is pursuing a "steel partnership" with the US to ringfence their respective economies from overcapacity.

EU must take immediate action, and firmly, prior to operations cease in significant portions of the European steel sector and its value chains.