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EU officials revealed they will match the United States' steel tariffs, effectively doubling levies on imports to 50% in a decision condemned as "a critical danger" to the sector in the UK.

Major Challenge for British Steel Industry

Given that eighty percent of British exports going to the EU, this policy shift poses the British steel sector's biggest ever challenge, according to the lobby group speaking for the industry.

New EU Measures and Regulations

In its plan presented to the EU legislature this week, the European Commission additionally suggested reducing the existing quota for tariff-exempt steel and requiring international producers to state where the steel was melted and poured to stop China sneaking products in through third nations.

The European steel industry faced potential collapse – we are protecting it so that it can invest, decarbonise, and become competitive again.

Overhaul of Existing System

These measures are intended to replace a import framework that has been in operation for the past seven years and which is due to expire in 2026 and is now considered ineffective. To do nothing could have been "disastrous" for the industry, a European official said.

Industry Response and Concerns

Nevertheless, industry representatives, from the trade association UK Steel, stated EU increasing duties would create "the biggest crisis the UK steel industry has encountered".

There were calls for the UK authorities to "acknowledge the urgent need to implement domestic protections to defend" the British steel sector – which is still reeling from a 25% tariff from Trump recently – from the threat of vast quantities of world steel redirected from US and European markets.

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

Labor and Political Calls

Union leaders, assistant general secretary at labor union Community, stated the new measures represented "a survival risk" to British steel production.

Labor and business representatives urged the UK government to begin talks urgently with the EU on nation-specific tariff exemptions, pointing out that the United Kingdom was now the EU's primary trading partner.

Broader Context

Industry leaders in the European Union have also been warning for months that their own industry faces being "eliminated" through the new 50% tariffs on American market shipments combined with high energy costs and low-cost Chinese imports.

The steel industry on in both the UK and EU is described as a essential sector, providing elemental components in everything from skyscraper structures, wind turbines and transport infrastructure to dishwashers and kitchenware.

Adoption and Next Steps

The new measures must be agreed by member states and the European parliament, with the EU executive head urging national governments and European parliament members to act fast in support of the proposal.

If the plan is ratified, the EU will reduce its existing tariff-free allowance by 47% to 18.3m tonnes a annually, a level last seen in 2013. It will apply a 50% duty on imports beyond the quota and oblige countries exporting into 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 not be subject to import limits or duties because of their close trading relationship in the European Economic Area, the EU has confirmed.

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

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