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EU officials have announced plans to match the United States' import duties on steel, effectively doubling levies on imports to fifty percent in a action described as "an existential threat" to the industry in Britain.

Major Challenge for UK Steel Exports

With 80% of British exports going to the EU, this policy shift represents the British steel sector's biggest ever crisis, as stated by the industry association representing the industry.

New EU Proposals and Regulations

Through its proposal presented to the EU legislature on Tuesday, the EU executive additionally suggested slashing the current allowance for duty-free imports and obliging foreign suppliers to declare where the steel was melted and poured to stop China diverting exports through other countries.

EU steel sector stood at the brink of failure – these measures safeguard it so that it can invest, reduce emissions, and become competitive again.

Replacement of Current Framework

The proposals are intended to replace 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 stated.

Industry Reaction and Warnings

However, Gareth Stace, from the trade association UK Steel, stated EU increasing duties would create "the most severe challenge the UK steel industry has encountered".

He called on the government to "acknowledge the urgent need to implement domestic protections to protect" the UK steel industry – which is affected by a 25% duty imposed by the US recently – from the risk of millions of tonnes of global steel diverted away from American and EU markets.

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

Union and Political Pressure

Alasdair McDiarmid, representative at steelworkers' union Community, said the proposed changes represented "an existential threat" to UK steel.

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

Industry Background

Sector representatives in the EU have also been warning for months that their own industry faces being "wiped out" through the increased duties on exports to the US combined with high energy costs and low-cost Chinese imports.

Steel on in both the UK and EU is described as a foundational industry, providing basic materials in products ranging from skyscraper structures, wind turbines and transport infrastructure to dishwashers and cutlery.

Implementation and Next Steps

The new measures must be agreed by member states and the EU legislature, with the EU executive head calling on member states and European parliament members to move quickly in support of the proposal.

Should approval be granted, the European Union will cut its existing tariff-free allowance by forty-seven percent to 18.3m tonnes a annually, a level previously recorded in 2013. It will apply a 50% duty on foreign steel beyond the quota and oblige nations shipping to the bloc to declare the production origin to avoid bypassing of the measures.

Exceptions and International Cooperation

Norway, Iceland, and Liechtenstein will be exempt from tariff quotas or tariffs because of their close trading relationship in the EEA, the EU has said.

Alongside the proposal, the EU is pursuing a "steel partnership" with the United States to ringfence their respective economies from overcapacity.

EU must take immediate action, and firmly, before operations cease in significant portions of the European steel sector and its value chains.