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The European Union declared plans to mirror Donald Trump's import duties on steel, effectively doubling levies on imports to 50% in a move described as "a survival risk" to the industry in the UK.

Unprecedented Crisis for UK Steel Exports

With 80% of British exports going to the European Union, this policy shift represents the UK steel industry's most severe challenge, as stated by the industry association representing the industry.

New EU Measures and Rules

Through its proposal presented to the EU legislature on Tuesday, the European Commission additionally suggested slashing the current allowance for tariff-exempt steel and obliging foreign suppliers to declare the origin of steel production to stop China diverting exports through third nations.

EU steel sector was on the verge of collapse – we are protecting it so that investments can be made, decarbonise, and become competitive again.

Overhaul of Current Framework

These measures are intended to replace a quota system that has been functioning for the past seven years and which is set to expire in 2026 and is now considered not fit for purpose. To do nothing could have been "fatal" for the industry, one EU official stated.

Sector Response and Concerns

However, industry representatives, from the trade association British Steel, said Brussels doubling its tariffs would create "the biggest crisis the British steel sector has ever faced".

He called on the government to "acknowledge the critical necessity to put in place its own measures to protect" the UK steel industry – which is still reeling from a 25% duty imposed by the US recently – from the risk of vast quantities 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 Political Calls

Alasdair McDiarmid, representative at steelworkers' union Community, said the new measures posed "a survival risk" to British steel production.

Labor and business representatives called on the UK government to start negotiations urgently with the EU on country-specific duty-free quotas, pointing out that the United Kingdom was now the EU's No 1 trading partner.

Industry Background

Industry leaders in the EU have also been warning for several months that the European steel sector confronts being "wiped out" through the increased duties on American market shipments along with rising energy prices and cheap Chinese competition.

Steel on both sides of the Channel is considered a foundational industry, supplying elemental components in everything from building frameworks, renewable energy equipment and transport infrastructure to household appliances and cutlery.

Implementation and Future Actions

The new measures must be agreed by EU nations and the European parliament, with the EU executive head urging member states and European parliament members to move quickly in backing the initiative.

Should approval be granted, the EU will reduce its current duty-free quota by forty-seven percent to 18.3 million tons a annually, a level previously recorded in 2013. It will apply a 50% duty on imports beyond the quota and require nations exporting into the bloc 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 import limits or tariffs due to their strong economic ties in the EEA, the EU has said.

In addition to these measures, the European Union is seeking a "metals alliance" with the United States to protect their respective economies from overcapacity.

EU needs to act now, and decisively, prior to operations cease in significant portions of the European steel sector and its value chains.