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EU officials declared plans to mirror the United States' steel tariffs, increasing to double taxes on foreign steel to 50% in a action described as "a survival risk" to the sector in the UK.

Unprecedented Crisis for British Steel Exports

With eighty percent of UK steel shipments destined for the EU, this policy shift poses the British steel sector's biggest ever challenge, as stated by the industry association representing the sector.

New EU Proposals and Rules

In its plan presented to the European parliament on Tuesday, the EU executive also proposed cutting the current allowance for duty-free imports and obliging foreign suppliers to disclose the origin of steel production to prevent Chinese producers sneaking products in through third nations.

The European steel industry was on the verge of collapse – these measures safeguard it so that it can invest, reduce emissions, and become competitive again.

Overhaul of Existing System

These measures are designed to supersede a import framework that has been in operation for the past seven years and which is set to expire in 2026 and is now seen as outdated. Inaction could have been "catastrophic" for the sector, a European official stated.

Sector Response and Concerns

However, Gareth Stace, head of the trade association UK Steel, stated EU increasing duties would create "the biggest crisis the British steel sector has ever faced".

There were calls for the UK authorities to "acknowledge the urgent need to implement domestic protections to defend" the British steel sector – which is still reeling from a twenty-five percent tariff imposed by the US earlier this year – from the risk of millions of tonnes of world steel diverted away from US and European markets.

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

Union and Political Pressure

Union leaders, representative at steelworkers' union the industry union, said the proposed changes posed "an existential threat" to UK steel.

Unions and industry leaders urged the UK government to begin talks urgently with the EU on nation-specific duty-free quotas, noting that the UK was now the EU's primary trading partner.

Industry Background

Industry leaders in the EU have also been warning for several months that the European steel sector confronts being "eliminated" through the new 50% tariffs on American market shipments combined with rising energy prices and cheap Chinese competition.

Steel on in both the UK and EU is described as a foundational industry, supplying basic materials in products ranging from building frameworks, renewable energy equipment and railways to dishwashers and kitchenware.

Adoption and Future Actions

The new measures require approval by EU nations and the EU legislature, with the EU executive head urging national governments and MEPs to move quickly in support of the proposal.

If the plan is ratified, the European Union will reduce its current duty-free quota by forty-seven percent to 18.3 million tons a year, a level previously recorded in 2013. It will impose a 50% tariff on foreign steel exceeding the limit and oblige countries shipping to the bloc to state where the steel was melted and poured to prevent circumvention of the measures.

Exceptions and Global Partnerships

These European nations will be exempt from tariff quotas or duties due to their close trading relationship in the EEA, the European Union has confirmed.

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

EU needs to act now, and decisively, prior to operations cease in significant portions of the European steel sector and its supply networks.