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The European Union declared plans to match Donald Trump's steel tariffs, effectively doubling levies on imports to 50% in a decision described as "a critical danger" to the industry in Britain.

Major Challenge for UK Steel Exports

Given that eighty percent of British exports destined for the European Union, this policy shift creates the UK steel industry's biggest ever crisis, as stated by the lobby group speaking for the sector.

European Commission Measures and Regulations

In its plan presented to the European parliament on Tuesday, the European Commission additionally suggested cutting the current allowance for duty-free imports and obliging foreign suppliers to disclose where the steel was melted and poured to stop Chinese producers sneaking products in through other countries.

The European steel industry was on the verge of collapse – we are protecting it so that investments can be made, reduce emissions, and regain competitiveness.

Replacement of Existing System

These measures are designed to supersede a quota system that has been functioning for the past seven years and which is set to expire in 2026 and is now seen as ineffective. To do nothing could have been "fatal" for the sector, one EU official said.

Sector Reaction and Concerns

However, Gareth Stace, head of the trade association British Steel, stated Brussels doubling its tariffs would pose "the biggest crisis the British steel sector has ever faced".

There were calls for the government to "recognise the urgent need to implement domestic protections to defend" the British steel sector – which is still reeling from a 25% duty from Trump earlier this year – from the risk of millions of tonnes of world steel redirected from US and European markets.

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

Labor and Government Calls

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

Unions and industry leaders urged Keir Starmer to begin talks immediately with the European Union on nation-specific tariff exemptions, pointing out that the UK was now the European Union's primary trading partner.

Industry Background

Sector representatives in the European Union have also been warning for months that the European steel sector confronts being "wiped out" through the increased duties on exports to the US combined with high energy costs and cheap Chinese competition.

Steel on both sides of the Channel is considered a essential sector, providing elemental components in everything from skyscraper structures, wind turbines and transport infrastructure to household appliances and kitchenware.

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 act fast in backing the initiative.

If the plan is ratified, the EU will reduce its existing tariff-free allowance by forty-seven percent to 18.3m tonnes a year, a level last seen in 2013. It will apply a 50% duty on imports beyond the quota and oblige countries exporting into the EU to state where the steel was melted and poured to avoid bypassing of the sanctions.

Exemptions and Global Partnerships

Norway, Iceland, and Liechtenstein will be exempt from tariff quotas or tariffs due to their close trading relationship in the EEA, the EU has confirmed.

Alongside the proposal, the EU is seeking a "metals alliance" with the United States to protect their national industries from excess production.

The European Union must take immediate action, and firmly, prior to operations cease in large parts of the European steel sector and its supply networks.