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EU officials revealed plans to match the United States' steel tariffs, effectively doubling levies on imports to fifty percent in a action condemned as "a survival risk" to the sector in the UK.

Unprecedented Crisis for British Steel Industry

Given that 80% of UK steel shipments destined for the EU, this change poses the UK steel industry's biggest ever challenge, according to the industry association speaking for the sector.

European Commission Measures and Rules

In its plan presented to the EU legislature on Tuesday, the EU executive also proposed reducing the current allowance for duty-free imports and obliging foreign suppliers to state where the steel was melted and poured to prevent Chinese producers sneaking products in through other countries.

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

Replacement of Current Framework

These measures are intended to replace a import framework that has been functioning for the last 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, a European official said.

Industry Reaction and Warnings

However, industry representatives, head of the industry body British Steel, stated EU increasing duties would create "the biggest crisis the UK steel industry has ever faced".

There were calls for the UK authorities to "acknowledge the urgent need to implement domestic protections to defend" the British steel sector – which is affected by a 25% tariff imposed by Trump earlier this year – from the threat of vast quantities of global steel redirected from American and EU markets.

This surge in foreign steel "could be terminal for many of our remaining steel companies.

Union and Political Calls

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

Labor and business representatives called on the UK government to begin talks urgently with the EU on nation-specific duty-free quotas, pointing out that the UK was now the European Union's primary trading partner.

Industry Background

Industry leaders in the European Union have also been warning for several months that the European steel sector faces being "eliminated" through the increased duties on exports to the US along with high energy costs and low-cost Chinese imports.

Steel on both sides of the Channel is considered a foundational industry, supplying basic materials in everything from skyscraper structures, wind turbines and railways to household appliances and cutlery.

Implementation and Next Steps

These proposals require approval by EU nations and the EU legislature, with the European Commission president calling on member states and MEPs to move quickly in support of the proposal.

If the plan is ratified, the European Union will cut its current duty-free quota by 47% to 18.3 million tons a year, a volume last seen in 2013. It will impose a fifty percent tariff on imports exceeding the limit and oblige countries shipping to the bloc to state the production origin to avoid bypassing of the sanctions.

Exceptions and Global Partnerships

Norway, Iceland, and Liechtenstein will be exempt from import limits or tariffs due to their strong economic ties in the European Economic Area, the EU has said.

Alongside the proposal, the European Union is seeking a "metals alliance" with the United States to ringfence their national industries from excess production.

EU needs to act now, and decisively, before all lights go out in large parts of the European steel sector and its supply networks.