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EU officials declared they will mirror Donald Trump's import duties on steel, effectively doubling taxes on foreign steel to 50% in a decision described as "an existential threat" to the industry in Britain.

Major Challenge for British Steel Industry

Given that eighty percent of British exports destined for the European Union, this policy shift poses the British steel sector's largest crisis, as stated by the industry association representing the sector.

New EU Proposals and Regulations

In its plan submitted to the European parliament this week, the EU executive additionally suggested reducing the current allowance for duty-free imports and obliging international producers to declare the origin of steel production to prevent Chinese producers diverting exports through other countries.

EU steel sector stood at the brink of failure – we are protecting it so that investments can be made, reduce emissions, and become competitive again.

Replacement of Existing System

These measures are intended 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system that has been functioning for the last seven years and which is due to expire in 2026 and is now considered outdated. To do nothing could have been "disastrous" for the industry, one EU official said.

Sector Reaction and Concerns

However, Gareth Stace, from the industry body UK Steel, said Brussels increasing duties would pose "the most severe challenge the UK steel industry has encountered".

He called on the government to "recognise the urgent need to put in place domestic protections to defend" the UK steel industry – which is still reeling from a 25% tariff imposed by Trump earlier this year – from the risk of millions of tonnes of global steel diverted away from American and EU markets.

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

Labor and Government Pressure

Union leaders, representative at steelworkers' union Community, stated the proposed changes represented "an existential threat" to British steel production.

Labor and business representatives urged the UK government to begin talks immediately with the European Union on nation-specific tariff exemptions, pointing out that the United Kingdom was now the EU's No 1 export market.

Broader Context

Industry leaders in the EU 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 combined with high energy costs and cheap Chinese competition.

The steel industry on in both the UK and EU is considered a foundational industry, supplying basic materials in products ranging from building frameworks, renewable energy equipment and railways to household appliances and kitchenware.

Adoption and Next Steps

These proposals must be agreed by EU nations and the European parliament, with the EU executive head urging national governments and European parliament members to move quickly in support of the initiative.

If the plan is ratified, the European Union will reduce its current duty-free quota by 47% to 18.3 million tons a year, a volume previously recorded in 2013. It will impose a fifty percent tariff on imports exceeding the limit and oblige nations shipping to the bloc to declare the production origin to prevent circumvention of the sanctions.

Exemptions and Global Partnerships

These European nations will be exempt from tariff quotas or duties because of their strong economic ties in the European Economic Area, the EU has confirmed.

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

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