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The European Union revealed they will mirror Donald Trump's steel tariffs, effectively doubling levies on foreign steel to fifty percent in a decision condemned as "a survival risk" to the industry in Britain.

Unprecedented Crisis for British Steel Industry

With 80% of UK steel shipments destined for the EU, this policy shift represents the UK steel industry's largest challenge, as stated by the industry association speaking for the industry.

New EU Proposals and Regulations

In its plan presented to the EU legislature this week, the EU executive additionally suggested cutting the existing quota for duty-free imports and obliging international producers to state where the steel was melted and poured to stop China diverting exports through other countries.

EU steel sector stood at the brink of failure – 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 past seven years and which is set to expire in 2026 and is now considered not fit for purpose. To do nothing could have been "fatal" for the sector, one EU official said.

Industry Reaction and Warnings

Nevertheless, Gareth Stace, head of the industry body British Steel, said EU doubling its tariffs would create "the biggest crisis the British steel sector has encountered".

There were calls for the government to "recognise the urgent need to put in place its own measures to protect" the British steel sector – which is still reeling from a twenty-five percent tariff from the US recently – from the threat of millions of tonnes of world steel redirected from US and European markets.

This flood of imports "could be terminal for many of our remaining steel companies.

Union and Political Calls

Union leaders, assistant general secretary at labor union the industry union, stated the proposed changes posed "a survival risk" to British steel production.

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

Broader Context

Sector representatives in the European Union have repeatedly cautioned for months that their own industry confronts being "eliminated" through the new 50% tariffs on exports to the US along with rising energy prices and cheap Chinese competition.

The steel industry on both sides of the Channel is described as a essential sector, supplying elemental components in products ranging from building frameworks, renewable energy equipment and railways to household appliances and cutlery.

Adoption and Next Steps

The new measures must be agreed by member states and the EU legislature, with the European Commission president calling on member states and European parliament members to act fast in support of the proposal.

Should approval be granted, the European Union will cut its current duty-free quota by forty-seven percent to 18.3m tonnes a year, a volume last seen in 2013. It will apply a 50% duty on imports exceeding the limit and require countries exporting into the bloc to declare the production origin to prevent circumvention of the measures.

Exemptions and Global Partnerships

Norway, Iceland, and Liechtenstein will be exempt from import limits or duties because of their close trading relationship in the EEA, the EU has confirmed.

Alongside the proposal, the EU is seeking a "steel partnership" with the US to protect their respective economies from excess production.

The European Union needs to act now, and decisively, before all lights go out in large parts of the EU steel industry and its value chains.