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The European Union revealed plans to mirror the United States' import duties on steel, increasing to double levies on foreign steel to fifty percent in a action described as "an existential threat" to the industry in the UK.

Unprecedented Crisis for British Steel Industry

Given that 80% of UK steel shipments destined for the EU, this change represents the British steel sector's largest crisis, according to the industry association representing the industry.

New EU Measures and Regulations

Through its proposal submitted to the EU legislature on Tuesday, the EU executive additionally suggested slashing the current allowance for duty-free imports and obliging international producers to declare the origin of steel production to stop Chinese producers sneaking products in through other countries.

EU steel sector faced potential collapse – these measures safeguard it so that investments can be made, decarbonise, and regain competitiveness.

Replacement of Existing System

The proposals are intended to supersede a import framework that has been in operation for the last seven years and which is set to expire in 2026 and is now considered not fit for purpose. Inaction could have been "disastrous" for the industry, a European official stated.

Industry Reaction and Warnings

Nevertheless, industry representatives, from the industry body British Steel, said Brussels increasing duties would pose "the biggest crisis the British steel sector has ever faced".

He called on the government to "recognise the critical necessity to put in place its own measures to protect" the UK steel industry – which is affected by a twenty-five percent duty from Trump earlier this year – from the risk of vast quantities of world steel diverted away from American and EU markets.

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

Labor and Government Pressure

Union leaders, assistant general secretary at labor union Community, stated the new measures represented "a survival risk" to UK steel.

Labor and business representatives urged the UK government to begin talks urgently with the EU on country-specific duty-free quotas, noting that the United Kingdom was now the EU's No 1 export market.

Broader Context

Sector representatives in the European Union have repeatedly cautioned for several months that their own industry confronts being "eliminated" through the increased duties on American market shipments combined with rising energy prices and low-cost Chinese imports.

Steel on both sides of the Channel is considered a essential sector, supplying basic materials in everything from skyscraper structures, wind turbines and transport infrastructure to dishwashers and cutlery.

Implementation and Next Steps

These proposals require approval by member states and the EU legislature, with the EU executive head urging member states and European parliament members to move quickly in support of the initiative.

Should approval be granted, the European Union 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 foreign steel beyond the quota and require nations exporting into the EU to declare where the steel was melted and poured to avoid bypassing of the measures.

Exemptions and International Cooperation

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

Alongside the proposal, the European Union is pursuing a "steel partnership" with the US 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.