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EU officials have announced plans to match Donald Trump's steel tariffs, increasing to double taxes on imports to 50% in a decision described as "a survival risk" to the industry in the UK.

Unprecedented Crisis for UK Steel Exports

With 80% of British exports going to the European Union, this policy shift creates the UK steel industry's biggest ever challenge, according to the lobby group speaking for the sector.

New EU Measures and Rules

Through its proposal submitted to the EU legislature on Tuesday, the European Commission additionally suggested cutting the current allowance for duty-free imports and requiring foreign suppliers to declare where the steel was melted and poured to prevent China sneaking products in through other countries.

The European steel industry was on the verge of collapse – these measures safeguard it so that it can invest, reduce emissions, and become competitive again.

Replacement of Current Framework

These measures 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 seen as ineffective. To do nothing could have been "disastrous" for the sector, a European official stated.

Industry Reaction and Warnings

However, Gareth Stace, from the trade association UK Steel, stated Brussels doubling its tariffs would create "the biggest crisis the UK steel industry has encountered".

There were calls for the UK authorities to "recognise the critical necessity to put in place domestic protections to protect" the British steel sector – which is affected by a 25% duty from the US recently – from the threat of vast quantities of world steel diverted away from American and EU markets.

This flood of imports "could be terminal for numerous steel companies.

Labor and Political Calls

Alasdair McDiarmid, assistant general secretary at labor union the industry union, stated the new measures represented "a survival risk" to UK steel.

Labor and business representatives called on the UK government to begin talks urgently with the EU on country-specific tariff exemptions, noting that the UK was now the European Union's primary trading partner.

Broader Context

Sector representatives in the EU have repeatedly cautioned for months that the European steel sector faces being "wiped out" through the new 50% tariffs on exports to the US along with high energy costs and cheap Chinese competition.

Steel on both sides of the Channel is considered a foundational industry, providing elemental components in everything from skyscraper structures, renewable energy equipment and railways to dishwashers and kitchenware.

Implementation and Next Steps

The new measures must be agreed by EU nations and the EU legislature, with the EU executive head calling on national governments and MEPs to move quickly in support of the initiative.

If the plan is ratified, the EU will reduce its current duty-free quota by forty-seven percent to 18.3 million tons a annually, a volume last seen in 2013. It will impose a 50% tariff on imports exceeding the limit and require nations shipping to the EU to declare the production origin to avoid bypassing of the sanctions.

Exemptions and Global Partnerships

These European nations will be exempt from tariff quotas or duties because of their strong economic ties in the EEA, the European Union has confirmed.

In addition to these measures, the EU is seeking a "metals alliance" with the United States to ringfence their national industries from overcapacity.

The European Union needs to act now, and firmly, before operations cease in significant portions of the EU steel industry and its value chains.