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The European Union declared plans to mirror the United States' import duties on steel, effectively doubling levies on foreign steel to 50% in a move condemned as "a survival risk" to the sector in Britain.

Major Challenge for British Steel Industry

With 80% of British exports going to the European Union, this policy shift represents the UK steel industry's largest challenge, according to the lobby group speaking for the sector.

New EU Proposals and Regulations

Through its proposal submitted to the European parliament this week, the EU executive also proposed reducing the existing quota for duty-free imports and requiring foreign suppliers to disclose the origin of steel production to stop Chinese producers diverting exports through third nations.

EU steel sector was on the verge of collapse – we are protecting it so that investments can be made, reduce emissions, and become competitive again.

Replacement of Existing System

The proposals are designed to replace 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 ineffective. Inaction could have been "catastrophic" for the sector, a European official said.

Sector Response and Warnings

Nevertheless, industry representatives, from the industry body British Steel, stated Brussels doubling its tariffs would create "the biggest crisis the British steel sector has encountered".

There were calls for the government to "acknowledge the urgent need to put in place its own measures to protect" the UK steel industry – which is still reeling from a twenty-five percent duty imposed by Trump recently – from the risk of vast quantities of global steel diverted away from American and EU markets.

This flood of imports "could be terminal for many of our remaining steel companies.

Union and Government Pressure

Alasdair McDiarmid, representative at steelworkers' union Community, stated the proposed changes posed "an existential threat" to British steel production.

Labor and business representatives urged the UK government to start negotiations immediately with the European Union on country-specific tariff exemptions, pointing out that the United Kingdom 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 new 50% tariffs on exports to the US along with rising energy prices and low-cost Chinese imports.

The steel industry on both sides of the Channel is described as a foundational industry, supplying elemental components in products ranging from building frameworks, wind turbines and railways to household appliances and kitchenware.

Adoption and Next Steps

These proposals require approval by member states and the European parliament, with the EU executive head urging member states and European parliament members to move quickly in backing the proposal.

Should approval be granted, the European Union will reduce its current duty-free quota by forty-seven percent to 18.3m tonnes a year, a level last seen in 2013. It will impose a 50% tariff on foreign steel exceeding the limit and require countries exporting into the bloc to declare where the steel was melted and poured to prevent circumvention of the measures.

Exemptions and International Cooperation

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

Alongside the proposal, the European Union is pursuing a "steel partnership" with the US to protect their national industries from overcapacity.

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