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EU officials have announced plans to mirror Donald Trump's import duties on steel, effectively doubling taxes on imports to fifty percent in a action described as "an existential threat" to the industry in the UK.

Major Challenge for UK Steel Exports

With eighty percent of UK steel shipments destined for the European Union, this policy shift creates the UK steel industry's biggest ever challenge, as stated by the industry association representing the industry.

European Commission Measures and Rules

In its plan presented to the EU legislature on Tuesday, the European Commission also proposed reducing the current allowance for duty-free imports and obliging foreign suppliers to declare where the steel was melted and poured to prevent China diverting exports through other countries.

The European steel industry faced potential collapse – these measures safeguard it so that investments can be made, decarbonise, and regain competitiveness.

Replacement of Existing System

These measures are designed to supersede a quota system that has been functioning for the last seven years and which is due to expire in 2026 and is now considered not fit for purpose. To do nothing could have been "disastrous" for the industry, one EU official stated.

Industry Reaction and Concerns

Nevertheless, Gareth Stace, from the industry body UK Steel, said Brussels doubling its tariffs would create "the biggest crisis the UK steel industry has ever faced".

He called on 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 Trump earlier this year – from the risk of millions of tonnes of world steel diverted away from American and EU markets.

This surge in foreign steel "could be fatal for many of our remaining steel companies.

Labor and Government Pressure

Union leaders, representative at steelworkers' union the industry union, stated the proposed changes posed "a survival risk" to UK steel.

Unions and industry leaders urged Keir Starmer to begin talks urgently with the EU on country-specific duty-free quotas, noting that the UK was now the European Union's primary export market.

Industry Background

Industry leaders in the European Union have repeatedly cautioned for several months that the European steel sector confronts being "eliminated" through the new 50% tariffs on exports to the US combined with high energy costs and cheap Chinese competition.

Steel on both sides of the Channel is considered a essential sector, providing basic materials in products ranging from skyscraper structures, wind turbines and transport infrastructure to dishwashers and kitchenware.

Adoption and Future Actions

These proposals must be agreed by member states and the EU legislature, with the EU executive head urging member states and European parliament members to act fast in support of the proposal.

If the plan is ratified, the European Union will reduce its existing tariff-free allowance by forty-seven percent to 18.3m tonnes a year, a level previously recorded in 2013. It will impose a 50% tariff on foreign steel beyond the quota and require nations exporting into the bloc to state where the steel was melted and poured to avoid bypassing of the sanctions.

Exceptions and Global Partnerships

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

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

EU must take immediate action, and firmly, before all lights go out in significant portions of the EU steel industry and its value chains.