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The European Union revealed plans to mirror the United States' import duties on steel, increasing to double taxes on foreign steel to fifty percent in a move condemned as "a survival risk" to the industry in the UK.

Major Challenge for British Steel Exports

With eighty percent of UK steel shipments going to the EU, this policy shift poses the UK steel industry's biggest ever challenge, according to the industry association speaking for the sector.

European Commission Proposals and Regulations

Through its proposal submitted to the European parliament this week, the European Commission additionally suggested cutting the existing quota for tariff-exempt steel and requiring international producers to declare the origin of steel production to prevent Chinese producers sneaking products in through third nations.

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

Replacement of Current Framework

The proposals are intended to supersede a quota system that has been functioning for the last seven years and which is set to expire in 2026 and is now seen as not fit for purpose. Inaction could have been "fatal" for the industry, one EU official said.

Sector Reaction and Concerns

However, Gareth Stace, head of the industry body UK Steel, stated Brussels increasing duties would pose "the biggest crisis the UK steel industry has ever faced".

There were calls for the government to "recognise the critical necessity to implement domestic protections to defend" the British steel sector – which is still reeling from a twenty-five percent tariff from the US recently – from the threat of millions of tonnes of world steel redirected from US and European markets.

This flood of imports "might prove terminal for numerous steel companies.

Labor and Government Pressure

Alasdair McDiarmid, representative at labor union Community, stated the proposed changes represented "an existential threat" to UK steel.

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

Industry Background

Industry leaders in the EU have also been warning for several months that their own industry faces being "wiped out" through the new 50% tariffs on American market shipments combined with high energy costs and cheap Chinese competition.

The steel industry on in both the UK and EU is described as a foundational industry, supplying basic materials in everything from skyscraper structures, renewable energy equipment and railways to dishwashers and cutlery.

Adoption and Future Actions

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

If the plan is ratified, the EU will cut its current duty-free quota by 47% to 18.3 million tons a year, a level previously recorded in 2013. It will impose a fifty percent tariff on imports exceeding the limit and require nations exporting into the bloc to declare the production origin to prevent circumvention of the measures.

Exceptions and International Cooperation

These European nations will be exempt from tariff quotas or duties due to their close trading relationship in the EEA, the European Union has confirmed.

Alongside the proposal, the EU is seeking a "steel partnership" with the United States to protect their respective economies from overcapacity.

EU must take immediate action, and decisively, prior to operations cease in significant portions of the EU steel industry and its value chains.