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EU officials declared they will match Donald Trump's steel tariffs, increasing to double levies on imports to fifty percent in a decision condemned as "a critical danger" to the sector in the UK.

Major Challenge for British Steel Industry

Given that eighty percent of UK steel shipments destined for the EU, this policy shift represents the UK steel industry's largest challenge, according to the industry association representing the sector.

New EU Measures 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 requiring international producers to declare where the steel was melted and poured to stop Chinese producers sneaking products in through third nations.

EU steel sector was on the verge of collapse – these measures safeguard it so that it can invest, decarbonise, and regain competitiveness.

Overhaul of Existing System

These measures are intended to replace 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 ineffective. Inaction could have been "fatal" for the industry, a European official said.

Industry Reaction and Warnings

Nevertheless, Gareth Stace, from the trade association UK Steel, said EU increasing duties would pose "the biggest crisis the British steel sector has encountered".

There were calls for the government to "acknowledge the urgent need to put in place domestic protections to defend" the UK steel industry – which is still reeling from a twenty-five percent tariff from the US earlier this year – from the threat of millions of tonnes of global steel redirected from American and EU markets.

This surge in foreign steel "might prove terminal for many of our remaining steel companies.

Labor and Government Pressure

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

Labor and business representatives urged Keir Starmer to begin talks immediately with the European Union on nation-specific tariff exemptions, pointing out that the UK was now the European Union's No 1 trading partner.

Industry Background

Industry leaders in the European Union have also been warning for several months that the European steel sector confronts being "wiped out" through the increased duties on American market shipments along with rising energy prices and cheap Chinese competition.

The steel industry on in both the UK and EU is described as a essential sector, supplying basic materials in everything from building frameworks, renewable energy equipment and transport infrastructure to household appliances 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 national governments and European parliament members to move quickly in backing the proposal.

Should approval be granted, the EU will reduce its current duty-free quota by 47% to 18.3 million tons a annually, a volume last seen in 2013. It will apply a fifty percent duty on foreign steel exceeding the limit and require countries exporting into the bloc to declare where the steel was melted and poured to prevent circumvention of the measures.

Exceptions and Global Partnerships

Norway, Iceland, and Liechtenstein will be exempt from import limits or tariffs due to their close trading relationship in the European Economic Area, the European Union has confirmed.

In addition to these measures, the EU is seeking a "steel partnership" with the US to protect their national industries from excess production.

The European Union needs to act now, and firmly, before operations cease in large parts of the EU steel industry and its supply networks.