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The European Union declared plans to mirror Donald Trump's steel tariffs, increasing to double levies on foreign steel to fifty percent in a decision condemned as "an existential threat" to the sector in the UK.

Unprecedented Crisis for UK Steel Exports

With 80% of UK steel shipments destined for the EU, this change represents the UK steel industry's most severe crisis, as stated by the industry association representing the industry.

European Commission Measures and Regulations

In its plan submitted to the EU legislature this week, the EU executive additionally suggested reducing the current allowance for duty-free imports and requiring international producers to disclose where the steel was melted and poured to prevent China sneaking products in through other countries.

The European steel industry was on the verge of collapse – these measures safeguard it so that it can invest, decarbonise, and become competitive again.

Replacement of Existing System

These measures are designed to supersede a import framework that has been in operation for the past seven years and which is set to expire in 2026 and is now considered ineffective. Inaction could have been "catastrophic" for the sector, one EU official stated.

Sector Reaction and Warnings

Nevertheless, Gareth Stace, head of the industry body British Steel, stated Brussels increasing duties would create "the biggest crisis the British steel sector has encountered".

There were calls for the government to "acknowledge the urgent need to put in place domestic protections to defend" the UK steel industry – which is affected by a twenty-five percent tariff from the US recently – from the risk of vast quantities of global steel diverted away from US and European markets.

This surge in foreign steel "might prove terminal for numerous steel companies.

Labor and Political Calls

Union leaders, assistant general secretary at labor union Community, said the new measures represented "a survival risk" to British steel production.

Labor and business representatives urged Keir Starmer to start negotiations urgently with the European Union on country-specific duty-free quotas, noting that the UK was now the EU's primary trading partner.

Broader Context

Industry leaders in the European Union have also been warning for months that the European steel sector faces being "eliminated" through the new 50% tariffs on American market shipments along with high energy costs and low-cost Chinese imports.

Steel on in both the UK and EU is considered a foundational industry, providing elemental components in products ranging from skyscraper structures, wind turbines and transport infrastructure to dishwashers and cutlery.

Adoption and Next Steps

The new measures require approval by member states and the EU legislature, with the European Commission president urging national governments and European parliament members to move quickly in support of the proposal.

Should approval be granted, the EU will cut its existing tariff-free allowance by forty-seven percent to 18.3 million tons a year, a volume previously recorded in 2013. It will apply a fifty percent duty on imports beyond the quota and require countries exporting into the EU to declare the production origin to avoid bypassing of the sanctions.

Exemptions and Global Partnerships

Norway, Iceland, and Liechtenstein will be exempt from import limits or duties due to their close trading relationship in the European Economic Area, the European Union has confirmed.

In addition to these measures, the European Union is seeking a "metals alliance" with the US to ringfence their respective economies from overcapacity.

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