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EU officials have announced they will match Donald Trump's steel tariffs, increasing to double levies on foreign steel to 50% in a decision condemned as "a critical danger" to the sector in Britain.

Major Challenge for UK Steel Exports

Given that eighty percent of UK steel shipments going to the European Union, this policy shift represents the British steel sector's largest crisis, according to the lobby group speaking for the sector.

New EU Proposals and Rules

Through its proposal presented to the European parliament this week, the EU executive also proposed reducing the current allowance for tariff-exempt steel and obliging international producers to disclose the origin of steel production to stop China sneaking products in through other countries.

EU steel sector was on the verge of collapse – we are protecting it so that it can invest, reduce emissions, and become competitive again.

Overhaul of Existing System

The proposals are intended to replace a import framework that has been functioning for the last seven years and which is due to expire in 2026 and is now seen as not fit for purpose. To do nothing could have been "disastrous" for the sector, one EU official stated.

Sector Reaction and Concerns

However, industry representatives, from the industry body British Steel, stated EU increasing duties would pose "the most severe challenge the British steel sector has encountered".

There were calls for the UK authorities to "recognise the critical necessity to put in place domestic protections to protect" the UK steel industry – which is still reeling from a twenty-five percent duty from the US recently – from the threat of vast quantities of global steel diverted away from US and European markets.

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

Union and Government Calls

Union leaders, representative at steelworkers' union Community, said the proposed changes represented "a survival risk" to UK steel.

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

Broader Context

Industry leaders in the EU have also been warning for several months that the European steel sector faces being "eliminated" through the new 50% tariffs on exports to the US combined with rising energy prices and low-cost Chinese imports.

The steel industry on both sides of the Channel is described as a foundational industry, providing elemental components in everything from skyscraper structures, wind turbines and railways to household appliances and kitchenware.

Adoption and Future Actions

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

If the plan is ratified, the EU will reduce its current duty-free quota by 47% to 18.3m tonnes a annually, a volume previously recorded in 2013. It will impose a 50% duty on foreign steel beyond the quota and oblige nations shipping to the EU to state the production origin to avoid bypassing of the measures.

Exemptions and International Cooperation

These European nations will not be subject to tariff quotas or tariffs due to their strong economic ties in the EEA, the European Union has confirmed.

In addition to these measures, the European Union is pursuing a "steel partnership" with the United States to protect their respective economies from overcapacity.

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