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EU officials revealed they will mirror Donald Trump's steel tariffs, increasing to double levies on imports to fifty percent in a decision described as "an existential threat" to the sector in the UK.

Unprecedented Crisis for British Steel Exports

With eighty percent of British exports destined for the EU, this change represents the UK steel industry's biggest ever crisis, according to the industry association representing the sector.

European Commission Measures and Regulations

In its plan submitted to the EU legislature on Tuesday, the EU executive also proposed reducing the current allowance 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 was on the verge of collapse – these measures safeguard it so that investments can be made, decarbonise, and regain competitiveness.

Overhaul of Current Framework

These measures are intended 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 ineffective. Inaction could have been "disastrous" for the sector, a European official stated.

Industry Response and Warnings

However, industry representatives, head of the industry body UK Steel, said Brussels doubling its tariffs would create "the biggest crisis the UK steel industry has ever faced".

He called on the government to "acknowledge the critical necessity to put in place domestic protections to defend" the British steel sector – which is still reeling from a twenty-five percent tariff from 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 fatal for many of our remaining steel companies.

Union and Political Pressure

Alasdair McDiarmid, assistant general secretary at steelworkers' union the industry union, stated the new measures represented "a survival risk" to British steel production.

Unions and industry leaders called on Keir Starmer to start negotiations immediately with the EU on country-specific duty-free quotas, noting that the United Kingdom was now the EU's primary export market.

Broader Context

Industry leaders in the EU have repeatedly cautioned for several months that their own industry confronts being "wiped out" through the new 50% tariffs on American market shipments along with high energy costs and low-cost Chinese imports.

The steel industry on both sides of the Channel is considered a essential sector, providing elemental components in products ranging from building frameworks, renewable energy equipment and railways to dishwashers and cutlery.

Adoption and Future Actions

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 support of the proposal.

If the plan is ratified, the European Union will reduce its existing tariff-free allowance by 47% to 18.3m tonnes a year, a volume last seen in 2013. It will apply a fifty percent tariff on foreign steel exceeding the limit and require nations shipping to the bloc to declare the production origin to avoid bypassing of the measures.

Exemptions and International Cooperation

Norway, Iceland, and Liechtenstein will not be subject to import limits or tariffs because of their close trading relationship in the EEA, the EU has said.

In addition to these measures, the EU is pursuing a "metals alliance" with the United States to protect their respective economies from excess production.

EU needs to act now, and firmly, prior to operations cease in large parts of the European steel sector and its supply networks.