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The European Union have announced plans to match the United States' steel tariffs, increasing to double taxes on imports to 50% in a action condemned as "a critical danger" to the industry in the UK.

Unprecedented Crisis for British Steel Exports

Given that eighty percent of UK steel shipments destined for the EU, this change creates the British steel sector's largest challenge, according to the lobby group representing the industry.

New EU Measures and Rules

Through its proposal presented to the European parliament on Tuesday, the EU executive also proposed cutting the current allowance for tariff-exempt steel and obliging foreign suppliers to declare the origin of steel production to stop China diverting exports through other countries.

The European steel industry was on the verge of collapse – these measures safeguard it so that it can invest, reduce emissions, and regain competitiveness.

Overhaul of Current Framework

The proposals are intended to supersede a import framework that has been in operation for the last seven years and which is set to expire in 2026 and is now considered not fit for purpose. Inaction could have been "catastrophic" for the industry, a European official said.

Industry Response and Concerns

However, Gareth Stace, head of the industry body UK Steel, said Brussels increasing duties would pose "the biggest crisis the UK steel industry has ever faced".

He called on the government to "acknowledge the urgent need to implement domestic protections to defend" the UK steel industry – which is still reeling from a twenty-five percent tariff from Trump recently – from the risk of vast quantities of world steel diverted away from American and EU markets.

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

Union and Government Pressure

Alasdair McDiarmid, representative at steelworkers' union the industry union, said the new measures represented "a survival risk" to UK steel.

Unions and industry leaders urged the UK government to start negotiations immediately with the EU on country-specific duty-free quotas, pointing out that the UK was now the EU's No 1 trading partner.

Broader Context

Industry leaders in the European Union have also been warning for months that their own industry confronts being "eliminated" through the new 50% tariffs on American market shipments along with rising energy prices and cheap Chinese competition.

The steel industry on both sides of the Channel is considered a foundational industry, supplying elemental components in products ranging from building frameworks, wind turbines and transport infrastructure to household appliances and cutlery.

Implementation and Future Actions

The new measures require approval by EU nations and the EU legislature, with the European Commission president urging member states and MEPs to move quickly in backing the proposal.

If the plan is ratified, the EU will reduce its existing tariff-free allowance by forty-seven percent to 18.3 million tons a year, a level last seen in 2013. It will impose a fifty percent duty on imports exceeding the limit and require nations exporting into the EU to declare the production origin to prevent circumvention of the measures.

Exceptions and International Cooperation

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

Alongside the proposal, the European Union is seeking a "steel partnership" with the United States to ringfence their respective economies from overcapacity.

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