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EU officials declared they will mirror the United States' steel tariffs, effectively doubling taxes on foreign steel to fifty percent in a decision described as "an existential threat" to the industry in the UK.

Major Challenge for British Steel Exports

With eighty percent of British exports going to the EU, this change represents the UK steel industry's most severe challenge, as stated by the lobby group speaking for the sector.

New EU Measures and Rules

In its plan submitted to the EU legislature on Tuesday, the EU executive additionally suggested slashing the current allowance for tariff-exempt steel and obliging foreign suppliers to disclose the origin of steel production to stop Chinese producers diverting exports through third nations.

EU steel sector faced potential collapse – these measures safeguard it so that it can invest, reduce emissions, and regain competitiveness.

Overhaul of Current Framework

The proposals are intended to replace a import framework that has been in operation for the last seven years and which is due to expire in 2026 and is now considered outdated.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 sector, a European official stated.

Industry Reaction and Warnings

Nevertheless, industry representatives, head of the industry body British Steel, stated EU doubling its tariffs would create "the most severe challenge the British steel sector has encountered".

There were calls for the UK authorities to "recognise the critical necessity to put in place its own measures to defend" the UK steel industry – which is still reeling from a 25% duty from Trump recently – from the risk of vast quantities of global steel redirected from US and European markets.

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

Labor and Government Calls

Union leaders, assistant general secretary at steelworkers' union the industry union, stated the new measures represented "an existential threat" to British steel production.

Unions and industry leaders called on the UK government to start negotiations urgently with the EU on nation-specific duty-free quotas, pointing out that the United Kingdom was now the European Union's No 1 trading partner.

Broader Context

Sector representatives in the EU have repeatedly cautioned for months that their own industry faces being "wiped out" through the increased duties on exports to the US along with rising energy prices and cheap Chinese competition.

The steel industry on in both the UK and EU is described as a foundational industry, providing elemental components in products ranging from building frameworks, renewable energy equipment and transport infrastructure to dishwashers and kitchenware.

Adoption and Future Actions

The new measures must be agreed by EU nations and the EU legislature, with the European Commission president urging national governments and MEPs to act fast in support of the proposal.

If the plan is ratified, the EU will cut its current duty-free quota by forty-seven percent to 18.3m tonnes a year, a level last seen in 2013. It will apply a fifty percent tariff on imports beyond the quota and require nations shipping to the bloc to state the production origin to prevent circumvention of the measures.

Exceptions and Global Partnerships

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

Alongside the proposal, the EU is pursuing a "metals alliance" with the United States to protect their national industries from excess production.

EU must take immediate action, and decisively, before all lights go out in large parts of the European steel sector and its value chains.