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The European Union have announced they will mirror Donald Trump's import duties on steel, effectively doubling levies on foreign steel to 50% in a decision condemned as "an existential threat" to the industry in the UK.

Unprecedented Crisis for UK Steel Industry

Given that eighty percent of UK steel shipments destined for the EU, this change poses the UK steel industry's most severe challenge, as stated by the lobby group speaking for the sector.

New EU Measures and Regulations

In its plan submitted to the European parliament this week, the EU executive additionally suggested slashing the existing quota for duty-free imports and requiring foreign suppliers to disclose where the steel was melted and poured to prevent China diverting exports through third nations.

The European steel industry stood at the brink of failure – we are protecting it so that it can invest, reduce emissions, and regain competitiveness.

Replacement of Existing System

The proposals are intended to supersede a quota system that has been in operation for the last seven years and which is set to expire in 2026 and is now considered outdated. To do nothing could have been "fatal" for the industry, a European official stated.

Industry Reaction and Warnings

Nevertheless, Gareth Stace, head of the trade association UK Steel, said EU increasing duties would pose "the most severe challenge the UK steel industry has ever faced".

There were calls for the government to "recognise the critical necessity to implement domestic protections to protect" the UK steel industry – which is affected by a twenty-five percent duty from the US recently – from the risk of vast quantities of global steel diverted away from American and EU markets.

This surge in foreign steel "could be fatal for numerous steel companies.

Labor and Political Calls

Alasdair McDiarmid, assistant general secretary at labor union Community, said the new measures posed "a survival risk" to British steel production.

Labor and business representatives urged Keir Starmer to begin talks immediately with the EU on nation-specific duty-free quotas, noting that the United Kingdom was now the European Union's No 1 export market.

Industry Background

Sector representatives in the EU have also been warning for months that the European steel sector confronts being "wiped out" through the new 50% tariffs on exports to the US along with rising energy prices and cheap Chinese competition.

The steel industry on both sides of the Channel is described as a essential sector, providing basic materials in everything from skyscraper structures, renewable energy equipment and railways to household appliances and kitchenware.

Implementation and Future Actions

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

If the plan is ratified, the European Union will cut its current duty-free quota by 47% to 18.3 million tons a year, a volume last seen in 2013. It will apply a fifty percent tariff on foreign steel beyond the quota and require countries shipping to the bloc to state the production origin to prevent circumvention of the sanctions.

Exemptions and International Cooperation

Norway, Iceland, and Liechtenstein will be exempt from import limits or tariffs due to their close trading relationship in the European Economic Area, the European Union has confirmed.

Alongside the proposal, the EU is seeking a "metals alliance" with the US to protect their national industries from overcapacity.

The European Union must take immediate action, and firmly, prior to operations cease in significant portions of the European steel sector and its value chains.