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EU officials declared they will mirror the United States' steel tariffs, increasing to double levies on foreign steel to 50% in a decision condemned as "a critical danger" to the industry in Britain.

Unprecedented Crisis for British Steel Industry

Given that eighty percent of UK steel shipments going to the EU, this change creates the UK steel industry's biggest ever crisis, according to the lobby group speaking for the sector.

European Commission Measures and Regulations

In its plan presented to the EU legislature on Tuesday, the EU executive additionally suggested reducing the current allowance for duty-free imports and obliging international producers to disclose the origin of steel production to prevent China diverting exports through other countries.

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

Overhaul of Current Framework

The proposals are designed to replace a import framework that has been in operation for the past seven years and which is set to expire in 2026 and is now considered not fit for purpose. To do nothing could have been "disastrous" for the sector, one EU official said.

Sector Reaction and Concerns

However, industry representatives, from the industry body British Steel, said Brussels increasing duties would create "the most severe challenge the UK steel industry has ever faced".

There were calls for the UK authorities to "acknowledge the critical necessity to implement its own measures to defend" the UK steel industry – which is affected by a 25% tariff from Trump earlier this year – from the risk of vast quantities of world steel diverted away from American and EU markets.

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

Labor and Government Calls

Union leaders, assistant general secretary at labor union the industry union, said the proposed changes posed "an existential threat" to UK steel.

Labor and business representatives urged Keir Starmer to start negotiations immediately with the European Union on nation-specific tariff exemptions, noting that the United Kingdom was now the European Union's primary export market.

Industry Background

Sector representatives in the EU have repeatedly cautioned for months that their own industry faces being "wiped out" through the increased duties on American market shipments along with rising energy prices and low-cost Chinese imports.

Steel on both sides of the Channel is considered a essential sector, providing elemental components in products ranging from skyscraper structures, renewable energy equipment and transport infrastructure to household appliances and kitchenware.

Adoption and Next Steps

The new measures require approval by EU nations and the EU legislature, with the European Commission president urging national governments and MEPs to act fast in support of the initiative.

If the plan is ratified, the European Union will cut its existing tariff-free allowance by 47% to 18.3 million tons a annually, a level previously recorded in 2013. It will apply a 50% tariff on foreign steel exceeding the limit and require countries shipping to the EU to declare where the steel was melted and poured to prevent circumvention of the measures.

Exemptions and International Cooperation

These European nations will be exempt from tariff quotas or tariffs because of their strong economic ties in the European Economic Area, the European Union has said.

In addition to these measures, the EU is pursuing a "metals alliance" with the US to ringfence their respective economies from overcapacity.

The European Union must take immediate action, and decisively, prior to operations cease in large parts of the European steel sector and its value chains.