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EU officials revealed plans to mirror Donald Trump's import duties on steel, effectively doubling taxes on foreign steel to 50% in a action condemned as "a critical danger" to the industry in the UK.

Major Challenge for British Steel Exports

Given that eighty percent of UK steel shipments destined for the European Union, this change creates the UK steel industry's largest challenge, according to the lobby group representing the industry.

New EU Measures and Regulations

Through its proposal submitted to the EU legislature on Tuesday, the EU executive also proposed reducing the current allowance for tariff-exempt steel and obliging foreign suppliers to disclose where the steel was melted and poured to stop Chinese producers sneaking products in through other countries.

The European steel industry was on the verge of collapse – we are protecting it so that it can invest, decarbonise, and become competitive again.

Replacement of Current Framework

These measures are designed to replace a quota system that has been functioning for the past seven years and which is set to expire in 2026 and is now considered ineffective. To do nothing could have been "catastrophic" for the industry, one EU official said.

Sector Response and Concerns

Nevertheless, industry representatives, head of the trade association UK Steel, stated Brussels doubling its tariffs would create "the most severe challenge the UK steel industry has encountered".

There were calls for the government to "acknowledge the critical necessity to implement its own measures to defend" the British steel sector – which is still reeling from a twenty-five percent duty imposed by the US recently – from the risk of vast quantities of world steel redirected from US and European markets.

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

Union and Political Calls

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

Labor and business representatives urged the UK government to begin talks immediately with the European Union on country-specific duty-free quotas, noting that the UK was now the European Union's No 1 trading partner.

Industry Background

Sector representatives in the EU have repeatedly cautioned for several months that the European steel sector confronts being "wiped out" through the increased duties on exports to the US combined with high energy costs and low-cost Chinese imports.

The steel industry on in both the UK and EU is described as a essential sector, supplying basic materials in products ranging from skyscraper structures, wind turbines and transport infrastructure to household appliances and kitchenware.

Implementation and Next Steps

The new measures must be agreed by member states and the European parliament, with the European Commission president calling on member states and MEPs to move quickly in backing the initiative.

Should approval be granted, the EU will cut its existing tariff-free allowance by forty-seven percent to 18.3 million tons a annually, a volume last seen in 2013. It will impose a 50% tariff on foreign steel beyond the quota and require nations exporting into the EU to state the production origin to avoid bypassing of the sanctions.

Exemptions and International Cooperation

These European nations will not be subject to import limits or tariffs because of their strong economic ties in the EEA, the EU has said.

In addition to these measures, the EU is seeking a "steel partnership" with the US to ringfence their respective economies from overcapacity.

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