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The European Union have announced they will mirror the United States' steel tariffs, effectively doubling taxes on imports to fifty percent in a decision condemned as "a critical danger" to the sector in Britain.

Major Challenge for British Steel Exports

With eighty percent of British exports going to the EU, this policy shift represents the British steel sector's biggest ever challenge, as stated by the lobby group representing the sector.

New EU Measures and Regulations

In its plan presented to the EU legislature this week, the EU executive additionally suggested slashing the existing quota for tariff-exempt steel and requiring international producers to state the origin of steel production to prevent Chinese producers sneaking products in through third nations.

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

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 due to expire in 2026 and is now seen as ineffective. Inaction could have been "disastrous" for the sector, one EU official stated.

Industry Reaction and Concerns

Nevertheless, industry representatives, head of the trade association British Steel, stated EU increasing duties would create "the biggest crisis the British steel sector has encountered".

He called on the UK authorities to "acknowledge the critical necessity to put in place domestic protections to defend" the British steel sector – which is affected by a twenty-five percent duty from Trump earlier this year – from the risk of vast quantities of global steel diverted away from US and European markets.

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

Union and Political Pressure

Alasdair McDiarmid, assistant general secretary at labor union Community, said the new measures represented "an existential threat" to British steel production.

Labor and business representatives called on Keir Starmer to start negotiations urgently with the EU on nation-specific duty-free quotas, noting that the UK was now the European Union's No 1 export market.

Industry Background

Sector representatives in the European Union have repeatedly cautioned for months that their own industry confronts being "eliminated" through the increased duties on exports to the US combined with rising energy prices and cheap Chinese competition.

The steel industry on in both the UK and EU is described as a foundational industry, providing elemental components in everything from building frameworks, wind turbines and railways to dishwashers and kitchenware.

Implementation and Future Actions

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

If the plan is ratified, the EU will cut its existing tariff-free allowance by 47% to 18.3m tonnes a annually, a level last seen in 2013. It will apply a 50% duty on foreign steel exceeding the limit and oblige nations exporting into the bloc to declare where the steel was melted and poured to avoid bypassing of the sanctions.

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 EEA, the European Union has confirmed.

In addition to these measures, the European Union is seeking a "steel partnership" with the United States to ringfence their respective economies from overcapacity.

The European Union needs to act now, and decisively, prior to operations cease in large parts of the European steel sector and its supply networks.