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The European Union have announced plans to match Donald Trump's import duties on steel, effectively doubling taxes on imports to 50% in a decision described as "a survival risk" to the sector in Britain.

Major Challenge for UK Steel Exports

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

New EU Proposals and Rules

Through its proposal submitted to the EU legislature this week, the EU executive also proposed slashing the current allowance for tariff-exempt steel and obliging international producers to declare where the steel was melted and poured to stop China diverting exports through third nations.

The European steel industry faced potential collapse – these measures safeguard it so that it can invest, reduce emissions, and become competitive again.

Overhaul of Current Framework

The proposals are intended to replace 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. Inaction could have been "fatal" for the industry, one EU official stated.

Industry Reaction and Concerns

However, industry representatives, from the trade association UK Steel, said Brussels increasing duties would create "the biggest crisis the British steel sector has ever faced".

There were calls for the UK authorities to "recognise the urgent need to implement domestic protections to defend" the British steel sector – which is affected by a twenty-five percent tariff imposed by the US recently – from the threat of vast quantities of global steel diverted away from US and European markets.

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

Labor and Political Pressure

Union leaders, representative at labor union the industry union, said the new measures represented "a survival risk" to UK steel.

Labor and business representatives called on Keir Starmer to begin talks urgently with the EU on nation-specific duty-free quotas, noting that the United Kingdom was now the European Union's No 1 export market.

Industry Background

Sector representatives in the European Union have also been warning for months that the European steel sector confronts being "wiped out" through the new 50% tariffs on American market shipments along with high energy costs and cheap Chinese competition.

Steel on both sides of the Channel is considered a foundational industry, supplying basic materials in everything from building frameworks, wind turbines and transport infrastructure to household appliances and cutlery.

Adoption and Future Actions

These proposals require approval by EU nations and the EU legislature, with the European Commission president calling on national governments and European parliament members to act fast in backing the proposal.

If the plan is ratified, the European Union will cut its existing tariff-free allowance by 47% to 18.3m tonnes a annually, a volume last seen in 2013. It will apply a fifty percent tariff on imports beyond the quota and oblige nations shipping to the EU to state the production origin to avoid bypassing of the measures.

Exemptions and Global Partnerships

These European nations will be exempt from import limits or tariffs due to their strong economic ties in the European Economic Area, the European Union has said.

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

EU needs to act now, and decisively, prior to all lights go out in significant portions of the EU steel industry and its value chains.