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The European Union revealed they will mirror the United States' steel tariffs, increasing to double taxes on foreign steel to 50% in a move described as "a survival risk" to the sector in the UK.

Major Challenge for British Steel Industry

Given that eighty percent of UK steel shipments going to the EU, this policy shift creates the British steel sector's biggest ever crisis, according to the industry association speaking for the industry.

European Commission Proposals and Rules

Through its proposal submitted to the European parliament this week, the European Commission also proposed reducing the existing quota for duty-free imports and obliging foreign suppliers to disclose where the steel was melted and poured to stop China sneaking products in through third nations.

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

Replacement of Current Framework

These measures are designed to replace a import framework that has been in operation for the last seven years and which is set to expire in 2026 and is now seen as outdated. To do nothing could have been "catastrophic" for the sector, a European official said.

Sector Response and Warnings

However, Gareth Stace, from the trade association UK Steel, said Brussels doubling its tariffs would create "the most severe challenge the British steel sector has ever faced".

He called on the UK authorities to "recognise the critical necessity to implement domestic protections to defend" the UK steel industry – which is affected by a twenty-five percent tariff imposed by the US recently – from the risk of vast quantities of global steel diverted away from US and European markets.

This flood of imports "might prove terminal for many of our remaining steel companies.

Union and Political Calls

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

Unions and industry leaders called on Keir Starmer to start negotiations urgently with the EU on country-specific tariff exemptions, noting that the United Kingdom was now the European Union's No 1 trading partner.

Industry Background

Sector representatives in the European Union have repeatedly cautioned for months that their own industry confronts being "eliminated" through the new 50% tariffs on American market shipments combined with high energy costs and low-cost Chinese imports.

Steel on in both the UK and EU is considered a essential sector, supplying basic materials in products ranging from skyscraper structures, renewable energy equipment and railways to household appliances and kitchenware.

Implementation and Future Actions

The new measures require approval by member states and the European parliament, with the European Commission president urging national governments and European parliament members to move quickly in backing the initiative.

If the plan is ratified, the European Union will reduce its current duty-free quota by forty-seven percent to 18.3m tonnes a year, a level last seen in 2013. It will impose a 50% duty on imports exceeding the limit and require countries exporting into the bloc to state where the steel was melted and poured to prevent circumvention of the measures.

Exceptions and International Cooperation

Norway, Iceland, and Liechtenstein will not be subject to tariff quotas or tariffs due to their strong economic ties in the European Economic Area, the European Union has said.

Alongside the proposal, the European Union is pursuing a "steel partnership" with the US to protect their national industries from overcapacity.

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