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EU officials declared they will match the United States' steel tariffs, increasing to double levies on imports to 50% in a action condemned as "a survival risk" to the industry in Britain.

Major Challenge for UK Steel Industry

Given that 80% of UK steel shipments going to the EU, this policy shift creates the British steel sector's largest crisis, according to the lobby group representing the industry.

European Commission Proposals and Regulations

In its plan presented to the EU legislature on Tuesday, the European Commission additionally suggested cutting the existing quota for tariff-exempt steel and obliging international producers to disclose where the steel was melted and poured to stop Chinese producers diverting exports through third nations.

The European steel industry stood at the brink of failure – these measures safeguard it so that investments can be made, reduce emissions, and regain competitiveness.

Overhaul of Existing System

These measures are designed to supersede a quota system that has been in operation for the past seven years and which is set to expire in 2026 and is now considered outdated. To do nothing could have been "catastrophic" for the industry, a European official said.

Industry Response and Concerns

Nevertheless, industry representatives, from the trade association UK Steel, stated EU increasing duties would create "the most severe challenge the British steel sector has ever faced".

He called on the UK authorities to "acknowledge the urgent need to implement its own measures to defend" the British steel sector – which is still reeling from a twenty-five percent duty from Trump earlier this year – from the risk of millions of tonnes of world steel redirected from American and EU markets.

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

Labor and Government Calls

Alasdair McDiarmid, representative at steelworkers' union Community, stated the proposed changes represented "a survival risk" to British steel production.

Labor and business representatives urged Keir Starmer to begin talks urgently with the European Union on nation-specific duty-free quotas, noting that the United Kingdom was now the EU's primary export market.

Industry Background

Sector representatives in the European Union have repeatedly cautioned for months that their own industry confronts being "wiped out" through the increased duties on American market shipments along 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 products ranging from skyscraper structures, renewable energy equipment and transport infrastructure to dishwashers and cutlery.

Adoption and Next Steps

The new measures must be agreed by member states and the European parliament, with the EU executive head calling on national governments and MEPs to act fast in backing the initiative.

Should approval be granted, the European Union will reduce its existing tariff-free allowance by forty-seven percent to 18.3m tonnes a annually, a volume last seen in 2013. It will impose a 50% tariff on imports exceeding the limit and require countries exporting into the EU to state where the steel was melted and poured to avoid bypassing of the measures.

Exceptions and International Cooperation

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

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

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