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EU officials declared they will match the United States' import duties on steel, increasing to double levies on imports to fifty percent in a move described as "a critical danger" to the industry in the UK.

Major Challenge for UK Steel Exports

Given that 80% of UK steel shipments going to the EU, this policy shift represents the UK steel industry's largest crisis, as stated by the industry association representing the industry.

New EU Proposals and Rules

Through its proposal presented to the EU legislature this week, the EU executive also proposed reducing the existing quota for tariff-exempt steel and obliging international producers to declare the origin of steel production to prevent Chinese producers diverting exports through third nations.

EU steel sector faced potential collapse – these measures safeguard it so that it can invest, decarbonise, and become competitive again.

Overhaul of Current Framework

The proposals are designed to supersede a import framework 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 Reaction and Warnings

However, industry representatives, head of the trade association British Steel, said Brussels increasing duties would create "the most severe challenge the UK steel industry has encountered".

There were calls for the government to "recognise the urgent need to put in place its own measures to defend" the British steel sector – which is affected by a 25% tariff from the US recently – from the risk of millions of tonnes of global steel redirected from American and EU markets.

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

Labor and Political Calls

Alasdair McDiarmid, assistant general secretary at steelworkers' union the industry union, stated the new measures posed "an existential threat" to UK steel.

Labor and business representatives urged Keir Starmer to begin talks immediately with the European Union on nation-specific tariff exemptions, noting that the United Kingdom was now the EU's No 1 export market.

Broader Context

Sector representatives in the EU have also been warning for several months that the European steel sector confronts 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 elemental components in everything from skyscraper structures, wind turbines and railways to household appliances and kitchenware.

Adoption and Future Actions

These proposals must be agreed by EU nations and the EU legislature, with the EU executive head calling on member states and MEPs to move quickly in backing the initiative.

Should approval be granted, the European Union will reduce its current duty-free quota by 47% to 18.3 million tons a annually, a volume last seen in 2013. It will impose a 50% duty on foreign steel exceeding the limit and require nations shipping to the bloc to state the production origin to avoid bypassing of the measures.

Exemptions and Global Partnerships

These European nations will be exempt from import limits or duties because of their strong economic ties in the EEA, the European Union has said.

In addition to these measures, the EU is seeking a "steel partnership" with the US to protect their national industries from excess production.

The European Union must take immediate action, and firmly, prior to operations cease in significant portions of the EU steel industry and its supply networks.