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EU officials declared they will match Donald Trump's import duties on steel, effectively doubling levies on foreign steel to 50% in a decision described as "an existential threat" to the sector in Britain.

Unprecedented Crisis for UK Steel Industry

With 80% of British exports destined for the EU, this change creates the UK steel industry's largest crisis, as stated by the industry association speaking for the sector.

European Commission Measures and Regulations

In its plan presented to the EU legislature on Tuesday, the European Commission additionally suggested cutting the existing quota for duty-free imports and obliging international producers to state where the steel was melted and poured to stop Chinese producers diverting exports through other countries.

EU steel sector faced potential collapse – we are protecting it so that investments can be made, reduce emissions, and become competitive again.

Overhaul of Current Framework

These measures are intended to supersede a quota system that has been in operation for the last seven years and which is set to expire in 2026 and is now considered not fit for purpose. To do nothing could have been "fatal" for the industry, one EU official said.

Industry Reaction and Concerns

Nevertheless, industry representatives, from the trade association UK Steel, stated Brussels increasing duties would create "the biggest crisis the British steel sector has encountered".

He called on the UK authorities to "acknowledge the critical necessity to implement its own measures to protect" the UK steel industry – which is still reeling from a twenty-five percent duty from Trump recently – from the threat of millions of tonnes of global steel diverted away from American and EU markets.

This surge in foreign steel "could be fatal for many of our remaining steel companies.

Labor and Government Calls

Alasdair McDiarmid, assistant general secretary at labor union the industry union, said the new measures posed "an existential threat" to British steel production.

Labor and business representatives urged the UK government to start negotiations urgently with the EU on country-specific duty-free quotas, noting that the United Kingdom was now the European Union's No 1 export market.

Industry Background

Industry leaders in the EU have also been warning for several months that the European steel sector faces being "wiped out" 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 foundational industry, providing elemental components in products ranging from skyscraper structures, renewable energy equipment and railways to dishwashers and cutlery.

Implementation and Future Actions

The new measures must be agreed by EU nations and the EU legislature, with the EU executive head urging member states and MEPs to act fast in backing the initiative.

If the plan is ratified, the European Union 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 impose a 50% tariff on imports exceeding the limit and oblige nations shipping to the EU to state the production origin to avoid bypassing of the measures.

Exceptions and Global Partnerships

Norway, Iceland, and Liechtenstein will not be subject to tariff quotas or tariffs because of their close trading relationship in the European Economic Area, the European Union has said.

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

EU must take immediate action, and firmly, prior to operations cease in significant portions of the EU steel industry and its supply networks.