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EU officials have announced plans to mirror Donald Trump's import duties on steel, increasing to double taxes on imports to fifty percent in a action described as "a survival risk" to the industry in Britain.

Major Challenge for UK Steel Industry

Given that eighty percent of British exports destined for the EU, this change poses the UK steel industry's largest crisis, according to the industry association speaking for the sector.

New EU Proposals and Rules

Through its proposal presented to the EU legislature on Tuesday, the European Commission additionally suggested cutting the current allowance for duty-free imports and requiring foreign suppliers to disclose where the steel was melted and poured to prevent Chinese producers sneaking products in through other countries.

The European steel industry stood at the brink of failure – we are protecting it so that it can invest, decarbonise, and become competitive again.

Replacement of Existing System

The proposals are designed to supersede a quota system that has been in operation for the past 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 sector, a European official stated.

Sector Reaction and Concerns

Nevertheless, industry representatives, head of the trade association UK Steel, stated Brussels increasing duties would create "the biggest crisis the British steel sector has encountered".

There were calls for the government to "recognise the critical necessity to implement domestic protections to defend" the British steel sector – which is still reeling from a twenty-five percent tariff imposed by Trump earlier this year – from the risk of millions of tonnes of world steel diverted away from US and European markets.

This flood of imports "might prove fatal for numerous steel companies.

Labor and Government Pressure

Alasdair McDiarmid, assistant general secretary at steelworkers' union the industry union, stated the new measures posed "an existential threat" to British steel production.

Unions and industry leaders called on Keir Starmer to begin talks urgently with the EU on nation-specific duty-free quotas, pointing out that the United Kingdom was now the EU's No 1 trading partner.

Broader Context

Industry leaders in the European Union 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 along with high energy costs and cheap Chinese competition.

The steel industry on in both the UK and EU is described as a essential sector, providing elemental components in everything from building frameworks, renewable energy equipment and transport infrastructure to household appliances and kitchenware.

Implementation and Future Actions

The new measures require approval by member states and the EU legislature, 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 cut its existing tariff-free allowance by 47% to 18.3 million tons a annually, a volume last seen in 2013. It will apply a 50% duty on imports exceeding the limit and oblige nations shipping to the bloc to declare the production origin to avoid bypassing of the measures.

Exemptions and International Cooperation

These European nations will be exempt from tariff quotas or duties due to their close trading relationship in the EEA, the EU has said.

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

EU needs to act now, and firmly, before operations cease in large parts of the EU steel industry and its supply networks.