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The European Union declared plans to mirror the United States' steel tariffs, effectively doubling taxes on imports to 50% in a action described as "a survival risk" to the industry in the UK.

Major Challenge for UK Steel Industry

With 80% of British exports destined for the EU, this policy shift creates the UK steel industry's biggest ever challenge, as stated by the lobby group representing the sector.

European Commission Measures and Regulations

In its plan submitted to the European parliament this week, the EU executive additionally suggested reducing the existing quota for duty-free imports and obliging international producers to disclose the origin of steel production to prevent Chinese producers diverting exports through third nations.

EU steel sector faced potential collapse – these measures safeguard it so that it can invest, decarbonise, and become competitive again.

Overhaul of Current Framework

These measures are designed to supersede a quota system that has been functioning for the last seven years and which is set to expire in 2026 and is now considered outdated. Inaction could have been "fatal" for the industry, one EU official stated.

Industry Reaction and Warnings

Nevertheless, industry representatives, from the trade association British Steel, stated EU doubling its tariffs would pose "the most severe challenge the British steel sector has encountered".

He called on the UK authorities to "recognise the urgent need to put in place its own measures to defend" the British steel sector – which is still reeling from a twenty-five percent duty imposed by the US earlier this year – from the threat of millions of tonnes of world steel redirected from American and EU markets.

This surge in foreign steel "could be fatal for numerous steel companies.

Labor and Government Pressure

Union leaders, representative at steelworkers' union Community, stated the new measures posed "a survival risk" to UK steel.

Labor and business representatives called on Keir Starmer to begin talks immediately with the European Union on country-specific duty-free quotas, pointing out that the UK was now the EU's No 1 export market.

Broader Context

Industry leaders in the European Union have also been warning for several months that the European steel sector confronts being "eliminated" through the increased duties 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 everything from building frameworks, renewable energy equipment and railways to dishwashers and cutlery.

Implementation and Future Actions

These proposals require approval by EU nations and the EU legislature, with the European Commission president urging member states and European parliament members to act fast in support of the proposal.

Should approval be granted, the EU will cut its existing tariff-free allowance by 47% to 18.3m tonnes a annually, a volume last seen in 2013. It will impose a 50% tariff on foreign steel beyond the quota and oblige countries shipping to the bloc to declare where the steel was melted and poured to prevent circumvention of the measures.

Exceptions and International Cooperation

These European nations will not be subject to import limits or tariffs because of their close trading relationship in the European Economic Area, the European Union has said.

In addition to these measures, the European Union is pursuing a "steel partnership" with the United States to ringfence their respective economies from excess production.

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