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The European Union revealed they will mirror the United States' import duties on steel, effectively doubling levies on foreign steel to fifty percent in a move condemned as "a critical danger" to the sector in the UK.

Major Challenge for British Steel Exports

Given that 80% of UK steel shipments going to the European Union, this policy shift poses the UK steel industry's biggest ever challenge, as stated by the lobby group speaking for the sector.

New EU Proposals and Rules

In its plan presented to the EU legislature on Tuesday, the EU executive additionally suggested reducing the current allowance for duty-free imports and requiring international producers to disclose the origin of steel production to prevent Chinese producers sneaking products in through other countries.

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

Overhaul 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 not fit for purpose. Inaction could have been "catastrophic" for the industry, a European official stated.

Industry Reaction and Concerns

However, Gareth Stace, from the trade association UK Steel, stated EU doubling its tariffs would create "the biggest crisis the British steel sector has encountered".

He called on the government to "recognise the urgent need to implement domestic protections to protect" the British steel sector – which is still reeling from a twenty-five percent tariff imposed by the US recently – from the risk of millions of tonnes of world steel diverted away from US and European markets.

This surge in foreign steel "might prove terminal for numerous steel companies.

Union and Government Pressure

Alasdair McDiarmid, representative at labor union the industry union, said 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 duty-free quotas, pointing out that the United Kingdom was now the European Union's primary trading partner.

Industry Background

Sector representatives in the European Union have also been warning for several months that their own industry faces being "wiped out" through the increased duties on exports to the US combined with rising energy prices and cheap Chinese competition.

Steel on in both the UK and EU is considered a foundational industry, providing elemental components in products ranging from skyscraper structures, renewable energy equipment and railways to dishwashers and kitchenware.

Adoption and Next Steps

The new measures must be agreed by EU nations and the European parliament, with the EU executive head urging member states and MEPs to move quickly in support of the proposal.

Should approval be granted, the EU will reduce its existing tariff-free allowance by forty-seven percent to 18.3m tonnes a annually, a volume previously recorded in 2013. It will impose a 50% duty on imports exceeding the limit and require countries exporting into the EU to state the production origin to avoid bypassing of the sanctions.

Exemptions and Global Partnerships

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

In addition to these measures, the EU is seeking a "metals alliance" with the US to ringfence their national industries from excess production.

EU needs to act now, and firmly, before all lights go out in significant portions of the EU steel industry and its supply networks.