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The European Union revealed they will match Donald Trump's import duties on steel, effectively doubling levies on foreign steel to fifty percent in a move condemned as "an existential threat" to the sector in Britain.

Unprecedented Crisis for UK Steel Exports

Given that eighty percent of UK steel shipments destined for the EU, this change represents the British steel sector's largest crisis, as stated by the industry association representing the sector.

European Commission Proposals and Rules

In its plan submitted to the European parliament on Tuesday, the EU executive additionally suggested reducing the current allowance for tariff-exempt steel and obliging international producers to disclose the origin of steel production to stop China sneaking products in through third nations.

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

Replacement of Current Framework

The proposals are designed to supersede a quota system that has been functioning for the past seven years and which is due to expire in 2026 and is now considered not fit for purpose. To do nothing could have been "catastrophic" for the industry, a European official said.

Industry Reaction and Concerns

However, industry representatives, from the industry body British Steel, stated EU increasing duties would pose "the biggest crisis the UK steel industry has ever faced".

He called on the government to "recognise the urgent need to put in place domestic protections to defend" the UK steel industry – which is affected by a 25% duty from the US recently – from the threat of millions of tonnes of global steel redirected from American and EU markets.

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

Union and Political Calls

Alasdair McDiarmid, assistant general secretary at steelworkers' union Community, said the proposed changes posed "an existential threat" to UK steel.

Labor and business representatives urged Keir Starmer to begin talks urgently with the European Union on nation-specific duty-free quotas, noting that the UK was now the European Union's No 1 trading partner.

Industry Background

Industry leaders in the EU have also been warning for months that their own industry faces being "eliminated" through the new 50% tariffs on American market shipments along with high energy costs and cheap Chinese competition.

Steel on in both the UK and EU is described as a essential sector, supplying basic materials in products ranging from building frameworks, wind turbines and transport infrastructure to dishwashers and cutlery.

Adoption and Next Steps

These proposals must be agreed by EU nations 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 previously recorded in 2013. It will impose a fifty percent duty on foreign steel beyond the quota and require nations shipping to 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 not be subject to import limits or tariffs due to their strong economic ties in the European Economic Area, the EU has said.

Alongside the proposal, the EU is seeking a "steel partnership" with the United States to protect their national industries from overcapacity.

The European Union needs to act now, and decisively, prior to all lights go out in large parts of the EU steel industry and its supply networks.