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EU officials declared they will mirror the United States' import duties on steel, effectively doubling taxes on imports to fifty percent in a move condemned as "a critical danger" to the sector in Britain.

Major Challenge for British Steel Exports

With 80% of British exports destined for the EU, this policy shift creates the British steel sector's biggest ever challenge, as stated by the industry association representing the industry.

New EU Measures and Rules

Through its proposal submitted to the EU legislature this week, the European Commission additionally suggested cutting the current allowance for duty-free imports and obliging international producers to state the origin of steel production 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 investments can be made, decarbonise, and regain competitiveness.

Replacement of Existing System

These measures 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 seen as ineffective. Inaction could have been "fatal" for the industry, a European official said.

Sector Response and Warnings

However, industry representatives, from the industry body UK Steel, stated Brussels increasing duties would pose "the biggest crisis the British steel sector has ever faced".

There were calls for the government to "recognise the critical necessity to implement its own measures to defend" the British steel sector – which is affected by a twenty-five percent tariff from the US earlier this year – from the risk of millions of tonnes of global steel diverted away from US and European markets.

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

Union and Government Calls

Union leaders, assistant general secretary at steelworkers' union Community, said the proposed changes posed "a survival risk" to UK steel.

Labor and business representatives called on the UK government to start negotiations immediately with the European Union on country-specific duty-free quotas, pointing out that the UK was now the EU's No 1 export market.

Broader Context

Sector representatives in the European Union have also been warning for several months that their own industry confronts being "eliminated" through the new 50% tariffs on exports to the US combined with high energy costs and low-cost Chinese imports.

Steel on both sides of the Channel is described as a foundational industry, supplying elemental components in everything from skyscraper structures, wind turbines and transport infrastructure to household appliances and kitchenware.

Implementation and Next Steps

The new measures require approval by EU nations and the European parliament, with the EU executive head urging national governments and MEPs to act fast in backing the initiative.

Should approval be granted, the European Union will reduce its current duty-free quota by 47% to 18.3 million tons a year, a level previously recorded in 2013. It will impose a fifty percent duty on foreign steel beyond the quota and oblige countries shipping to the EU to declare where the steel was melted and poured to avoid bypassing of the measures.

Exceptions and Global Partnerships

Norway, Iceland, and Liechtenstein will not be subject to tariff quotas or tariffs due to their strong economic ties in the EEA, the EU has confirmed.

Alongside the proposal, the European Union is pursuing a "steel partnership" with the United States to ringfence their national industries from overcapacity.

EU needs to act now, and decisively, before all lights go out in large parts of the EU steel industry and its value chains.