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EU officials declared they will mirror the United States' import duties on steel, increasing to double taxes on foreign steel to 50% in a decision condemned as "a critical danger" to the industry in Britain.

Major Challenge for UK Steel Exports

Given that 80% of UK steel shipments going to the EU, this policy shift poses the UK steel industry's most severe crisis, according to the industry association speaking for the sector.

New EU Measures and Rules

Through its proposal submitted to the European parliament this week, the EU executive also proposed slashing the current allowance for duty-free imports and requiring international producers to state the origin of steel production to stop China sneaking products in through other countries.

EU steel sector stood at the brink of failure – these measures safeguard it so that it can invest, reduce emissions, and regain competitiveness.

Replacement of Existing System

These measures are intended to replace a import framework that has been functioning for the last seven years and which is set to expire in 2026 and is now seen as not fit for purpose. Inaction could have been "disastrous" for the sector, one EU official said.

Industry Response 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 ever faced".

He called on the government to "recognise the critical necessity to implement its own measures to protect" the British steel sector – which is still reeling from a twenty-five percent duty imposed by Trump recently – from the threat of millions of tonnes of global steel redirected from US and European markets.

This flood of imports "might prove fatal for many of our remaining steel companies.

Union and Political Calls

Union leaders, assistant general secretary at labor union Community, stated the new measures represented "a survival risk" to British steel production.

Labor and business representatives urged Keir Starmer to begin talks immediately with the European Union on country-specific duty-free quotas, pointing out that the UK was now the EU's primary export market.

Broader Context

Industry leaders in the European Union have repeatedly cautioned for months that their own industry confronts being "wiped out" through the new 50% tariffs on exports to the US combined with rising energy prices and cheap Chinese competition.

Steel on in both the UK and EU is described as a essential sector, providing basic materials in products ranging from skyscraper structures, renewable energy equipment and transport infrastructure to dishwashers and kitchenware.

Adoption and Next Steps

These proposals must be agreed by EU nations and the EU legislature, with the EU executive head urging national governments and European parliament members to act fast in backing the proposal.

If the plan is ratified, the EU 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 impose a 50% tariff on foreign steel exceeding the limit and oblige countries shipping to the EU to declare the production origin to prevent circumvention of the sanctions.

Exceptions and Global Partnerships

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

Alongside the proposal, the EU is seeking a "steel partnership" with the United States to protect their national industries from overcapacity.

EU needs to act now, and decisively, before operations cease in large parts of the European steel sector and its supply networks.