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EU officials revealed they will match Donald Trump's import duties on steel, increasing to double levies on foreign steel to 50% in a decision described as "an existential threat" to the industry in Britain.

Unprecedented Crisis for UK Steel Exports

With 80% of UK steel shipments destined for the European Union, this change creates the UK steel industry's biggest ever challenge, according to the industry association speaking for the sector.

European Commission Measures and Regulations

Through its proposal submitted to the EU legislature on Tuesday, the European Commission additionally suggested cutting the existing quota for tariff-exempt steel and obliging foreign suppliers to declare where the steel was melted and poured to prevent Chinese producers diverting exports through third nations.

The European steel industry was on the verge of collapse – these measures safeguard it so that it can invest, decarbonise, and regain competitiveness.

Overhaul of Existing System

The proposals are designed to supersede a import framework that has been functioning for the last seven years and which is set to expire in 2026 and is now considered outdated. Inaction could have been "fatal" for the sector, a European official stated.

Sector Reaction and Warnings

Nevertheless, industry representatives, head of the trade association UK Steel, stated Brussels increasing duties would create "the biggest crisis the UK steel industry has encountered".

There were calls for the UK authorities to "acknowledge the urgent need to implement its own measures to protect" the UK steel industry – which is still reeling from a 25% tariff imposed by Trump earlier this year – from the risk of millions of tonnes of world steel redirected from American and EU markets.

This flood of imports "might prove fatal for many of our remaining steel companies.

Labor and Government Pressure

Union leaders, assistant general secretary at steelworkers' union Community, said the new measures represented "an existential threat" to UK steel.

Unions and industry leaders called on Keir Starmer to start negotiations immediately with the EU on nation-specific duty-free quotas, pointing out that the United Kingdom was now the EU's primary export market.

Industry Background

Sector representatives in the European Union have also been warning for months that the European steel sector faces being "wiped out" through the new 50% tariffs on exports to the US along with rising energy prices and cheap Chinese competition.

Steel on both sides of the Channel is described as a essential sector, providing basic materials in products ranging from skyscraper structures, wind turbines and railways to dishwashers and cutlery.

Adoption and Future Actions

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 act fast in backing the proposal.

If the plan is ratified, the EU will cut its existing tariff-free allowance by 47% to 18.3 million tons a year, a level last seen in 2013. It will apply a fifty percent duty on imports beyond the quota and require countries exporting into the bloc to state the production origin to avoid bypassing of the measures.

Exceptions and Global Partnerships

Norway, Iceland, and Liechtenstein will be exempt from import limits or tariffs due to their strong economic ties in the EEA, the European Union has said.

Alongside the proposal, the EU is seeking a "steel partnership" with the United States to protect their national industries from excess production.

EU needs to act now, and decisively, before operations cease in large parts of the European steel sector and its value chains.