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EU officials revealed plans to match the United States' steel tariffs, effectively doubling levies on foreign steel to fifty percent in a action described as "a survival risk" to the industry in Britain.

Major Challenge for UK Steel Exports

Given that 80% of British exports destined for the EU, this policy shift represents the British steel sector's most severe crisis, according to the lobby group representing the sector.

European Commission Measures and Regulations

Through its proposal submitted to the European parliament this week, the EU executive also proposed cutting the existing quota for duty-free imports and obliging international producers to state the origin of steel production to prevent China diverting exports through other countries.

EU steel sector stood at the brink of failure – these measures safeguard it so that investments can be made, decarbonise, and regain competitiveness.

Replacement of Existing System

These measures are intended to replace a import framework that has been functioning for the last seven years and which is due to expire in 2026 and is now considered not fit for purpose. Inaction could have been "catastrophic" for the sector, one EU official stated.

Sector Reaction and Concerns

Nevertheless, industry representatives, head of the industry body British Steel, stated Brussels doubling its tariffs would create "the most severe challenge the UK steel industry has encountered".

He called on the government to "acknowledge the critical necessity to implement domestic protections to defend" the British steel sector – which is affected by a twenty-five percent tariff imposed by the US recently – from the risk of millions of tonnes of global steel redirected from US and European markets.

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

Labor and Government Calls

Union leaders, assistant general secretary at steelworkers' union the industry union, stated the proposed changes represented "an existential threat" to British steel production.

Unions and industry leaders called on Keir Starmer to start negotiations urgently with the EU on country-specific tariff exemptions, pointing out that the United Kingdom was now the EU's No 1 export market.

Broader Context

Industry leaders in the European Union have repeatedly cautioned for months that their own industry confronts being "eliminated" through the new 50% tariffs on exports to the US combined with high energy costs and cheap Chinese competition.

The steel industry on both sides of the Channel is considered a foundational industry, providing basic materials in everything from skyscraper structures, wind turbines and transport infrastructure to dishwashers and kitchenware.

Adoption and Next Steps

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

Should approval be granted, the European Union will reduce its current duty-free quota by forty-seven percent to 18.3m tonnes a year, a level last seen in 2013. It will impose a 50% tariff on imports beyond the quota and oblige nations shipping to the EU to state where the steel was melted and poured to prevent circumvention of the sanctions.

Exemptions and International Cooperation

Norway, Iceland, and Liechtenstein will be exempt from tariff quotas or tariffs because of their strong economic ties in the European Economic Area, the European Union has said.

Alongside the proposal, the European Union is seeking a "metals alliance" with the United States to protect their respective economies from overcapacity.

EU must take immediate action, and decisively, prior to all lights go out in significant portions of the EU steel industry and its supply networks.