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The European Union declared they will match Donald Trump's import duties on steel, effectively doubling levies on imports to 50% in a action described as "a critical danger" to the industry in Britain.

Unprecedented Crisis for British Steel Industry

With eighty percent of UK steel shipments going to the European Union, this policy shift poses the British steel sector's most severe challenge, as stated by the lobby group representing the sector.

European Commission Measures and Rules

Through its proposal submitted to the EU legislature on Tuesday, the EU executive also proposed slashing the existing quota for tariff-exempt steel and requiring foreign suppliers to disclose the origin of steel production to stop Chinese producers sneaking products in through other countries.

EU steel sector faced potential collapse – we are protecting it so that it can invest, decarbonise, and regain competitiveness.

Replacement of Current Framework

These measures are designed to supersede a quota system that has been in operation for the past 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 stated.

Sector Response and Concerns

Nevertheless, industry representatives, from the trade association British Steel, stated Brussels increasing duties would pose "the biggest crisis the British steel sector has encountered".

There were calls for the UK authorities to "recognise the urgent need to put in place its own measures to protect" the UK steel industry – which is still reeling from a 25% tariff from Trump earlier this year – from the threat of millions of tonnes of world steel diverted away from US and European markets.

This surge in foreign steel "might prove fatal for many of our remaining steel companies.

Labor and Government Calls

Union leaders, assistant general secretary at labor union the industry union, said the proposed changes posed "a survival risk" to UK steel.

Unions and industry leaders called on Keir Starmer to start negotiations urgently with the EU on nation-specific duty-free quotas, noting that the United Kingdom was now the EU's No 1 trading partner.

Broader Context

Sector representatives in the European Union have repeatedly cautioned for months that the European steel sector faces being "wiped out" through the new 50% tariffs on American market shipments combined with rising energy prices and cheap Chinese competition.

The steel industry on in both the UK and EU is considered a essential sector, supplying basic materials in everything from building frameworks, wind turbines and transport infrastructure to dishwashers and cutlery.

Adoption and Next Steps

The new measures must be agreed by EU nations and the European parliament, with the EU executive head calling on national governments and European parliament members to act fast in support of the proposal.

Should approval be granted, the European Union will cut its current duty-free quota by forty-seven percent to 18.3 million tons a annually, a level previously recorded in 2013. It will apply a fifty percent duty on foreign steel beyond the quota and require countries shipping to the bloc to state where the steel was melted and poured to prevent circumvention of the sanctions.

Exceptions and International Cooperation

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

In addition to these measures, the EU is pursuing a "steel partnership" with the United States to protect their national industries from overcapacity.

EU must take immediate action, and decisively, before all lights go out in significant portions of the EU steel industry and its supply networks.