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EU officials declared they will mirror Donald Trump's import duties on steel, effectively doubling taxes on foreign steel to fifty percent in a move condemned as "an existential threat" to the sector in Britain.

Major Challenge for British Steel Industry

With 80% of British exports going to the European Union, this policy shift poses the UK steel industry's largest crisis, as stated by the industry association representing the industry.

New EU Measures and Rules

Through its proposal submitted to the EU legislature this week, the EU executive additionally suggested slashing the existing quota for tariff-exempt steel and requiring international producers to state the origin of steel production to stop China diverting exports through other countries.

EU steel sector faced potential collapse – these measures safeguard it so that it can invest, decarbonise, and regain competitiveness.

Overhaul of Current Framework

The proposals 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 seen as ineffective. Inaction could have been "fatal" for the industry, a European official stated.

Sector Reaction and Warnings

Nevertheless, industry representatives, head of the industry body British Steel, said EU doubling its tariffs would create "the most severe challenge the British steel sector has encountered".

There were calls for the government to "recognise the urgent need to implement its own measures to defend" the UK steel industry – which is still reeling from a 25% tariff imposed by the US earlier this year – from the threat of vast quantities of global steel diverted away from US and European markets.

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

Labor and Government Calls

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

Labor and business representatives called on Keir Starmer to begin talks urgently with the European Union 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 the European steel sector confronts being "wiped out" 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, supplying elemental components in products ranging from skyscraper structures, wind turbines and railways to household appliances and cutlery.

Implementation and Next Steps

These proposals must be agreed by member states and the European parliament, with the EU executive head calling on member states and European parliament members to move quickly in support of the proposal.

Should approval be granted, the European Union will reduce its current duty-free quota by 47% to 18.3m tonnes a year, a level last seen in 2013. It will impose a fifty percent tariff on imports beyond the quota and require countries shipping to the EU to declare the production origin to prevent circumvention of the measures.

Exemptions and International Cooperation

These European nations will be exempt from import limits or duties due to 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 US to protect their national industries 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.