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The European Union revealed plans to mirror the United States' steel tariffs, increasing to double taxes on imports to fifty percent in a decision condemned as "a critical danger" to the industry in Britain.

Unprecedented Crisis for British Steel Exports

With eighty percent of British exports destined for the European Union, this change poses the UK steel industry's biggest ever crisis, according to the lobby group representing the sector.

European Commission Proposals and Rules

In its plan presented to the EU legislature this week, the European Commission also proposed cutting the existing quota for tariff-exempt steel and requiring foreign suppliers to declare where the steel was melted and poured to stop China sneaking products in through third nations.

EU steel sector faced potential collapse – these measures safeguard it so that it can invest, decarbonise, and become competitive again.

Overhaul of Existing System

These measures are designed 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 not fit for purpose. Inaction could have been "fatal" for the industry, a European official stated.

Industry Response and Concerns

Nevertheless, industry representatives, from the industry body UK Steel, said Brussels increasing duties would create "the most severe challenge the UK steel industry has encountered".

There were calls for the UK authorities to "recognise the critical necessity to put in place its own measures to protect" the UK steel industry – which is affected by a twenty-five percent tariff from Trump recently – from the risk of millions of tonnes of world steel redirected from American and EU markets.

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

Labor and Government Calls

Alasdair McDiarmid, representative at labor union the industry union, said the new measures represented "an existential threat" to British steel production.

Labor and business representatives urged the UK government to begin talks urgently with the EU on nation-specific tariff exemptions, noting that the UK was now the European Union's primary trading partner.

Broader Context

Industry leaders in the European Union have repeatedly cautioned for several months that the European steel sector confronts being "wiped out" through the increased duties on exports to the US along with high energy costs and cheap Chinese competition.

Steel on in both the UK and EU is considered a essential sector, supplying basic materials in everything from building frameworks, wind turbines and transport infrastructure to household appliances and cutlery.

Implementation and Next Steps

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

Should approval be granted, the European Union will cut its existing tariff-free allowance by forty-seven percent to 18.3m tonnes a year, a volume previously recorded in 2013. It will impose a 50% duty on imports beyond the quota and require countries exporting into the EU to state where the steel was melted and poured to avoid bypassing of the measures.

Exemptions and Global Partnerships

Norway, Iceland, and Liechtenstein will not be subject to tariff quotas or tariffs because of their strong economic ties in the EEA, the European Union has said.

In addition to these measures, the EU is pursuing a "metals alliance" with the United States to ringfence their national industries from excess production.

The European Union needs to act now, and firmly, before operations cease in large parts of the European steel sector and its supply networks.