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EU officials revealed plans to match the United States' import duties on steel, increasing to double levies on imports to fifty percent in a action described as "an existential threat" to the industry in Britain.

Major Challenge for UK Steel Exports

Given that 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 speaking for the industry.

New EU Measures and Rules

Through its proposal presented to the EU legislature this week, the European Commission additionally suggested slashing the current allowance for tariff-exempt steel and obliging international producers to state where the steel was melted and poured to prevent Chinese producers diverting exports through other countries.

EU steel sector was on the verge of collapse – these measures safeguard it so that investments can be made, decarbonise, and become competitive again.

Replacement of Existing System

The proposals are designed to replace a import framework that has been in operation for the last seven years and which is set to expire in 2026 and is now seen as outdated. To do nothing could have been "fatal" for the sector, a European official stated.

Industry Response and Concerns

Nevertheless, Gareth Stace, head of the industry body British Steel, said Brussels increasing duties would pose "the biggest crisis the British steel sector has ever faced".

He called on the UK authorities to "acknowledge the critical necessity to implement its own measures to defend" the UK steel industry – which is still reeling from a twenty-five percent tariff imposed by Trump recently – from the threat of vast quantities of global steel redirected from US and European markets.

This flood of imports "could be fatal for numerous steel companies.

Union and Government Pressure

Alasdair McDiarmid, representative at steelworkers' union the industry union, stated the proposed changes represented "an existential threat" to UK steel.

Labor and business representatives urged Keir Starmer to start negotiations immediately with the EU on country-specific tariff exemptions, pointing out that the UK was now the European Union's primary export market.

Broader Context

Industry leaders in the European Union have also been warning for several months that the European steel sector faces being "eliminated" through the increased duties on exports to the US combined with high energy costs and low-cost Chinese imports.

The steel industry on both sides of the Channel is considered a foundational industry, supplying basic materials in products ranging from skyscraper structures, renewable energy equipment and railways to household appliances and kitchenware.

Implementation and Future Actions

The new measures require approval by member states and the European parliament, with the EU executive head urging national governments and European parliament members to move quickly in support of the initiative.

Should approval be granted, the European Union will reduce its existing tariff-free allowance by forty-seven percent to 18.3m tonnes a annually, a level last seen in 2013. It will apply a fifty percent duty on foreign steel beyond the quota and require countries shipping to the EU to declare the production origin to prevent circumvention of the sanctions.

Exemptions and Global Partnerships

These European nations will be exempt from import limits or tariffs because of their strong economic ties in the EEA, the EU has said.

In addition to these measures, the EU is seeking a "metals alliance" with the United States to ringfence their respective economies 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 value chains.