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EU officials declared plans to mirror the United States' steel tariffs, effectively doubling taxes on foreign steel to fifty percent in a action condemned as "a critical danger" to the industry in the UK.

Unprecedented Crisis for UK Steel Industry

Given that eighty percent of British exports going to the European Union, this change poses the British steel sector's most severe crisis, as stated by the lobby group speaking for the sector.

New EU Measures and Rules

Through its proposal presented to the European parliament on Tuesday, the European Commission additionally suggested cutting the current allowance for duty-free imports and obliging international producers to disclose where the steel was melted and poured to stop China diverting exports through third nations.

EU steel sector was on the verge of collapse – these measures safeguard it so that investments can be made, decarbonise, and regain competitiveness.

Overhaul of Existing System

These measures are designed to supersede a quota system that has been in operation for the past seven years and which is due to expire in 2026 and is now seen as ineffective. To do nothing could have been "disastrous" for the industry, one EU official stated.

Industry Reaction and Warnings

Nevertheless, Gareth Stace, from the industry body British Steel, said Brussels doubling its tariffs would pose "the biggest crisis the British steel sector has encountered".

He called on the government to "acknowledge the urgent need to implement its own measures to protect" the UK steel industry – which is affected by a twenty-five percent tariff imposed by the US recently – from the risk of millions of tonnes of world steel diverted away from American and EU markets.

This flood of imports "might prove fatal for many of our remaining steel companies.

Union and Political Calls

Union leaders, assistant general secretary at steelworkers' union the industry union, stated the new measures represented "a survival risk" to British steel production.

Labor and business representatives urged Keir Starmer to start negotiations immediately with the EU on nation-specific duty-free quotas, noting that the UK was now the European Union's No 1 trading partner.

Broader Context

Sector representatives in the EU have also been warning for several months that the European steel sector confronts being "eliminated" through the increased duties on exports to the US along with rising energy prices and low-cost Chinese imports.

The steel industry on in both the UK and EU is considered a essential sector, providing basic materials in products ranging from skyscraper structures, renewable energy equipment and transport infrastructure to dishwashers and kitchenware.

Implementation and Next Steps

The new measures must be agreed by EU nations and the EU legislature, with the European Commission president calling on national governments and MEPs to act fast in backing the proposal.

Should approval be granted, the EU will reduce its existing tariff-free allowance by 47% to 18.3 million tons a annually, a level last seen in 2013. It will apply a fifty percent duty on imports beyond the quota and require countries exporting into the EU to declare the production origin to avoid bypassing of the measures.

Exceptions and International Cooperation

Norway, Iceland, and Liechtenstein will not be subject to tariff quotas or duties due to their strong economic ties in the European Economic Area, the European Union has said.

In addition to these measures, the European Union is seeking a "steel partnership" with the United States to ringfence their respective economies from overcapacity.

EU needs to act now, and firmly, prior to all lights go out in large parts of the European steel sector and its value chains.