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The European Union have announced plans to mirror the United States' import duties on steel, effectively doubling taxes on foreign steel to fifty percent in a move condemned as "a critical danger" to the sector in the UK.

Unprecedented Crisis for UK Steel Exports

With eighty percent of UK steel shipments destined for the EU, this policy shift poses the British steel sector's biggest ever challenge, as stated by the industry association representing the industry.

European Commission Proposals and Regulations

In its plan submitted to the EU legislature on Tuesday, the European Commission additionally suggested slashing the current allowance for tariff-exempt steel and obliging foreign suppliers to state where the steel was melted and poured to stop Chinese producers sneaking products in through third nations.

EU steel sector was on the verge of collapse – these measures safeguard it so that investments can be made, decarbonise, and regain competitiveness.

Replacement of Existing System

These measures are designed to replace a import framework that has been in operation for the last seven years and which is set to expire in 2026 and is now seen as ineffective. To do nothing could have been "catastrophic" for the sector, a European official said.

Industry Response and Warnings

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

He called on the UK authorities to "recognise the urgent need to put in place its own measures to defend" the British steel sector – which is affected by a twenty-five percent tariff from Trump recently – from the threat of vast quantities of global steel redirected from US and European markets.

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

Union and Government Calls

Union leaders, representative at steelworkers' union Community, said the proposed changes posed "an existential threat" to British steel production.

Labor and business representatives urged the UK government to begin talks urgently with the European Union on country-specific tariff exemptions, noting that the UK was now the EU's No 1 trading partner.

Industry Background

Industry leaders in the EU have also been warning for several months that their own industry confronts being "wiped out" through the increased duties on American market shipments combined with high energy costs and low-cost Chinese imports.

Steel on in both the UK and EU is described as a essential sector, providing elemental components in everything from skyscraper structures, wind turbines and transport infrastructure to household appliances and kitchenware.

Adoption and Next Steps

The new measures require approval by EU nations and the European parliament, with the EU executive head calling on national governments and European parliament members to move quickly in backing the initiative.

If the plan is ratified, the European Union will reduce its existing tariff-free allowance by 47% to 18.3m tonnes a annually, a volume last seen in 2013. It will impose a fifty percent duty on imports beyond the quota and require nations exporting into the bloc to state the production origin to prevent circumvention of the measures.

Exemptions and Global Partnerships

These European nations will not be subject to tariff quotas or tariffs because of their close trading relationship in the EEA, the EU has confirmed.

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

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