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EU officials revealed they will mirror the United States' steel tariffs, increasing to double taxes on imports to fifty percent in a move described as "a survival risk" to the industry in the UK.

Unprecedented Crisis for UK Steel Industry

Given that eighty percent of UK steel shipments destined for the EU, this policy shift poses the British steel sector's biggest ever challenge, according to the industry association representing the industry.

New EU Measures and Regulations

Through its proposal presented to the EU legislature on Tuesday, the European Commission additionally suggested cutting the existing quota for tariff-exempt steel and requiring foreign suppliers to declare the origin of steel production to prevent Chinese producers diverting exports through third nations.

EU steel sector was on the verge of collapse – these measures safeguard 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 functioning for the last seven years and which is due to expire in 2026 and is now considered ineffective. Inaction could have been "disastrous" for the sector, a European official stated.

Industry Response and Warnings

However, Gareth Stace, from the trade association UK Steel, stated Brussels doubling its tariffs would create "the biggest crisis the UK steel industry has encountered".

There were calls for the government to "acknowledge the critical necessity to put in place its own measures to protect" the British steel sector – which is still reeling from a twenty-five percent duty imposed by Trump earlier this year – from the threat of vast quantities of global steel redirected from US and European markets.

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

Labor and Political Pressure

Alasdair McDiarmid, representative at steelworkers' union the industry union, stated the proposed changes posed "a survival risk" to UK steel.

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

Industry Background

Sector representatives in the EU have repeatedly cautioned for months that the European steel sector confronts being "eliminated" through the increased duties on American market shipments combined with high energy costs 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 building frameworks, wind turbines and railways to dishwashers and cutlery.

Adoption and Next Steps

The new measures require approval by EU nations and the EU legislature, with the European Commission president calling on national governments and European parliament members to move quickly in backing the proposal.

Should approval be granted, the EU will cut its current duty-free quota by forty-seven percent to 18.3 million tons a annually, a volume last seen in 2013. It will impose a fifty percent tariff on foreign steel exceeding the limit and require nations shipping to the bloc to declare where the steel was melted and poured to avoid bypassing of the measures.

Exceptions and Global Partnerships

These European nations will be exempt from import limits or tariffs due to their close trading relationship in the EEA, the EU has confirmed.

Alongside the proposal, the European Union is seeking a "metals alliance" with the United States to protect their respective economies from overcapacity.

The European Union must take immediate action, and firmly, before operations cease in large parts of the EU steel industry and its value chains.