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The European Union have announced plans to match the United States' import duties on steel, increasing to double taxes on imports to 50% in a action described as "a critical danger" to the sector in the UK.

Major Challenge for British Steel Exports

With eighty percent of UK steel shipments going to the EU, this policy shift represents the British steel sector's biggest ever challenge, as stated by the industry association speaking for the industry.

New EU Measures and Regulations

In its plan submitted to the EU legislature on Tuesday, the EU executive additionally suggested cutting the current allowance for tariff-exempt steel and requiring foreign suppliers to disclose the origin of steel production to stop China diverting exports through other countries.

The European steel industry stood at the brink of failure – we are protecting it so that investments can be made, decarbonise, and regain competitiveness.

Overhaul of Existing System

The proposals are intended to replace a import framework that has been in operation for the last seven years and which is set to expire in 2026 and is now considered outdated. Inaction could have been "catastrophic" for the industry, a European official stated.

Industry Reaction and Concerns

Nevertheless, Gareth Stace, head of the trade association UK Steel, said EU increasing duties would create "the biggest crisis the British steel sector has ever faced".

There were calls for the UK authorities to "recognise the urgent need to put in place domestic protections to protect" the British steel sector – which is still reeling from a twenty-five percent duty imposed by the US earlier this year – from the risk of vast quantities of global steel redirected from American and EU markets.

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

Union and Government Calls

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

Unions and industry leaders urged the UK government to start negotiations immediately with the European Union on nation-specific tariff exemptions, pointing out that the UK was now the EU's primary export market.

Broader Context

Sector representatives in the EU have repeatedly cautioned for several months that their own industry confronts being "wiped out" through the increased duties 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, wind turbines and transport infrastructure to household appliances and cutlery.

Implementation and Future Actions

These proposals require approval by EU nations and the EU legislature, with the European Commission president urging member states and European parliament members to move quickly in support of the initiative.

Should approval be granted, the European Union will cut its existing tariff-free allowance by forty-seven percent to 18.3 million tons a annually, a volume last seen in 2013. It will impose a 50% tariff on foreign steel beyond the quota and require nations shipping to the bloc to declare the production origin to avoid bypassing of the measures.

Exemptions and Global Partnerships

These European nations will be exempt from import limits or tariffs because of their close trading relationship in the EEA, the European Union has said.

Alongside the proposal, the EU is pursuing a "metals alliance" with the United States to ringfence their respective economies from overcapacity.

The European Union must take immediate action, and firmly, before all lights go out in significant portions of the European steel sector and its supply networks.