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The European Union declared plans to mirror Donald Trump's steel tariffs, effectively doubling taxes on foreign steel to 50% in a action described as "a survival risk" to the industry in the UK.

Major Challenge for UK Steel Industry

With eighty percent of UK steel shipments destined for the European Union, this policy shift represents the British steel sector's most severe crisis, as stated by the industry association speaking for the industry.

New EU Proposals and Rules

In its plan presented to the EU legislature this week, the European Commission additionally suggested reducing the current allowance for duty-free imports and requiring foreign suppliers to disclose the origin of steel production to prevent Chinese producers diverting exports through other countries.

EU steel sector stood at the brink of failure – we are protecting it so that it can invest, decarbonise, and regain competitiveness.

Overhaul of Current Framework

These measures are designed to supersede a quota system that has been in operation for the past seven years and which is due to expire in 2026 and is now considered outdated. To do nothing could have been "disastrous" for the industry, a European official stated.

Sector Reaction and Concerns

Nevertheless, industry representatives, from the industry body British Steel, said Brussels increasing duties would create "the biggest crisis the UK steel industry has encountered".

He called on the government to "recognise the critical necessity to put in place its own measures to defend" the UK steel industry – which is still reeling from a twenty-five percent duty imposed by Trump recently – from the threat of vast quantities of global steel diverted away from US and European markets.

This flood of imports "might prove fatal for numerous steel companies.

Labor and Government Calls

Union leaders, assistant general secretary at labor union Community, stated 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 European Union's primary export market.

Broader Context

Sector representatives in the European Union have also been warning for months that the European steel sector faces being "eliminated" through the increased duties on American market shipments combined with rising energy prices and cheap Chinese competition.

The steel industry on both sides of the Channel is considered a foundational industry, supplying basic materials in products ranging from skyscraper structures, wind turbines and transport infrastructure to household appliances and cutlery.

Implementation and Future Actions

These proposals require approval by EU nations and the European parliament, with the European Commission president urging member states and MEPs to act fast in support of the initiative.

Should approval be granted, the European Union will reduce 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 exceeding the limit and oblige countries exporting into the bloc to state the production origin to prevent circumvention of the measures.

Exemptions and International Cooperation

These European nations will not be subject to import limits or duties due to their strong economic ties in the EEA, the European Union has confirmed.

In addition to these measures, the EU is pursuing a "steel partnership" with the United States to ringfence their national industries from overcapacity.

The European Union must take immediate action, and firmly, before all lights go out in large parts of the European steel sector and its value chains.