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The European Union have announced they will mirror the United States' import duties on steel, increasing to double taxes on imports to fifty percent in a action condemned as "an existential threat" to the industry in Britain.

Unprecedented Crisis for UK Steel Exports

With eighty percent of British exports destined for the EU, this policy shift represents the British steel sector's biggest ever crisis, according to the industry association representing the sector.

European Commission Measures and Rules

Through its proposal presented to the European parliament on Tuesday, the EU executive additionally suggested reducing the existing quota for tariff-exempt steel and requiring international producers to state the origin of steel production to prevent China sneaking products in 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.

Replacement of Current Framework

The proposals are intended to replace 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system that has been in operation for the past seven years and which is due to expire in 2026 and is now considered outdated. To do nothing could have been "fatal" for the industry, one EU official stated.

Industry Reaction and Concerns

Nevertheless, industry representatives, head of the industry body British Steel, said EU doubling its tariffs would create "the biggest crisis the British steel sector has encountered".

He called on the UK authorities to "recognise the urgent need to put in place its own measures to defend" the UK steel industry – which is still reeling from a twenty-five percent tariff from the US earlier this year – from the risk of millions of tonnes of global steel redirected from American and EU markets.

This surge in foreign steel "might prove terminal for numerous steel companies.

Union and Government Pressure

Alasdair McDiarmid, assistant general secretary at steelworkers' union Community, stated the new measures represented "an existential threat" to UK steel.

Labor and business representatives called on the UK government to start negotiations urgently with the EU on nation-specific tariff exemptions, pointing out that the UK was now the EU's primary trading partner.

Broader Context

Industry leaders in the European Union have also been warning for months that their own industry confronts being "wiped out" through the increased duties on American market shipments combined with rising energy prices and cheap Chinese competition.

The steel industry on in both the UK and EU is described as a foundational industry, supplying elemental components in everything from skyscraper structures, wind turbines and railways to household appliances and cutlery.

Implementation and Next Steps

The new measures require approval by EU nations and the European parliament, with the EU executive head calling on member states and MEPs to act fast in support of the proposal.

If the plan is ratified, the EU will reduce its existing tariff-free allowance by 47% to 18.3 million tons a year, a volume previously recorded in 2013. It will impose a 50% duty on foreign steel exceeding the limit and require countries exporting into the EU to state where the steel was melted and poured to prevent circumvention of the sanctions.

Exceptions and Global Partnerships

Norway, Iceland, and Liechtenstein will not be subject to tariff quotas or tariffs due to their close trading relationship in the European Economic Area, the EU has confirmed.

In addition to these measures, the EU is seeking a "metals alliance" with the US to protect their respective economies from excess production.

EU needs to act now, and firmly, prior to all lights go out in significant portions of the EU steel industry and its supply networks.