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EU officials revealed they will mirror the United States' import duties on steel, effectively doubling taxes on foreign steel to fifty percent in a decision described as "a critical danger" to the industry in Britain.

Unprecedented Crisis for British Steel Industry

With 80% of UK steel shipments going to the European Union, this policy shift poses the British steel sector's biggest ever challenge, as stated by the industry association speaking for the sector.

New EU Measures and Regulations

Through its proposal presented to the EU legislature this week, the European Commission also proposed cutting the current allowance for duty-free imports and requiring foreign suppliers to disclose the origin of steel production to stop Chinese producers sneaking products in through other countries.

EU steel sector faced potential collapse – these measures safeguard it so that it can invest, decarbonise, and become competitive again.

Overhaul of Current Framework

The proposals are designed to replace a import framework that has been functioning for the past seven years and which is set to expire in 2026 and is now considered not fit for purpose. Inaction could have been "catastrophic" for the industry, a European official stated.

Sector Response and Concerns

However, industry representatives, from the trade association British Steel, stated Brussels doubling its tariffs would create "the most severe challenge the UK steel industry has encountered".

He called on the UK authorities to "acknowledge the critical necessity to put in place domestic protections to defend" the UK steel industry – which is affected by 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 flood of imports "might prove terminal for many of our remaining steel companies.

Union and Political Pressure

Union leaders, representative at labor union the industry union, stated the new measures represented "an existential threat" to UK steel.

Labor and business representatives urged Keir Starmer to start negotiations urgently with the EU on nation-specific tariff exemptions, pointing out that the UK was now the European Union's No 1 trading partner.

Industry Background

Sector representatives in the European Union have repeatedly cautioned for several months that the European steel sector confronts 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 described as a foundational industry, supplying basic materials in everything from building frameworks, renewable energy equipment and railways to household appliances and cutlery.

Implementation and Next Steps

These proposals require approval by EU nations and the EU legislature, with the EU executive head calling on national governments and MEPs to move quickly in support of the initiative.

If the plan is ratified, the European Union will reduce its current duty-free quota by 47% to 18.3 million tons a annually, a level last seen in 2013. It will impose a fifty percent duty on imports exceeding the limit and oblige countries exporting into the bloc to declare the production origin to avoid bypassing of the measures.

Exceptions and International Cooperation

These European nations will not be subject to import limits or tariffs because of their close trading relationship in the European Economic Area, the European Union has confirmed.

Alongside the proposal, the EU is seeking a "steel partnership" with the United States to protect their national industries from overcapacity.

EU must take immediate action, and decisively, prior to all lights go out in large parts of the European steel sector and its value chains.