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EU officials have announced plans to match Donald Trump's import duties on steel, effectively doubling levies on imports to fifty percent in a action described as "a survival risk" to the sector in the UK.

Major Challenge for British Steel Industry

With 80% of British exports destined for the European Union, this policy shift creates the UK steel industry's biggest ever crisis, as stated by the lobby group speaking for the industry.

European Commission Proposals and Rules

Through its proposal presented to the European parliament this week, the EU executive additionally suggested cutting the current allowance for duty-free imports and requiring international producers to state the origin of steel production to stop Chinese producers diverting exports through third nations.

EU steel sector was on the verge of collapse – these measures safeguard it so that investments can be made, reduce emissions, and regain competitiveness.

Overhaul of Existing System

These measures are intended to replace a import framework that has been in operation for the past seven years and which is set to expire in 2026 and is now seen as not fit for purpose. Inaction could have been "disastrous" for the industry, a European official said.

Industry Reaction and Warnings

Nevertheless, Gareth Stace, from the industry body British Steel, said EU increasing duties would create "the biggest crisis the British steel sector has encountered".

There were calls for the government to "recognise the urgent need to put in place domestic protections to defend" the UK steel industry – which is affected by a 25% tariff from the US earlier this year – from the threat of vast quantities of world steel diverted away from US and European markets.

This flood of imports "could be fatal for numerous steel companies.

Labor and Government Calls

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

Unions and industry leaders called on the UK government to start negotiations immediately with the European Union on country-specific duty-free quotas, noting that the UK was now the EU's primary export market.

Broader Context

Sector representatives in the EU have repeatedly cautioned for several months that the European steel sector confronts being "eliminated" through the new 50% tariffs on exports to the US along with rising energy prices and low-cost Chinese imports.

Steel on in both the UK and EU is considered a essential sector, supplying elemental components in everything from skyscraper structures, renewable energy equipment and railways to household appliances and kitchenware.

Implementation and Future Actions

These proposals require approval by EU nations and the EU legislature, with the EU executive head urging member states and European parliament members to act fast 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 annually, a volume last seen in 2013. It will impose a fifty percent tariff on foreign steel exceeding the limit and require nations exporting into the EU to state where the steel was melted and poured to prevent circumvention of the sanctions.

Exceptions and Global Partnerships

Norway, Iceland, and Liechtenstein will not be subject to tariff quotas or tariffs because of their strong economic ties in the EEA, the EU has confirmed.

In addition to these measures, the EU is seeking a "steel partnership" with the US to protect their respective economies from overcapacity.

The European Union must take immediate action, and decisively, prior to operations cease in large parts of the European steel sector and its supply networks.