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The European Union have announced plans to mirror Donald Trump's import duties on steel, increasing to double levies on imports to fifty percent in a decision described as "a critical danger" to the industry in Britain.

Unprecedented Crisis for UK Steel Exports

Given that 80% of UK steel shipments destined for the European Union, this policy shift creates the UK steel industry's biggest ever challenge, according to the industry association speaking for the industry.

European Commission Measures and Regulations

In its plan submitted to the European parliament on Tuesday, the European Commission additionally suggested reducing the existing quota for duty-free imports and requiring foreign suppliers to declare where the steel was melted and poured to stop Chinese producers diverting exports through other countries.

The European steel industry faced potential collapse – these measures safeguard it so that it can invest, decarbonise, and regain competitiveness.

Replacement of Existing System

These measures are designed to replace a quota system 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 "fatal" for the sector, one EU official stated.

Industry Response and Warnings

Nevertheless, Gareth Stace, from the trade association UK Steel, said EU increasing duties would pose "the most severe challenge the British steel sector has encountered".

He called on the government to "acknowledge the critical necessity to put in place its own measures to protect" the UK steel industry – which is affected by a 25% duty from the US earlier this year – from the threat of vast quantities of world steel diverted away from US and European markets.

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

Labor and Political Calls

Alasdair McDiarmid, assistant general secretary at steelworkers' union the industry union, said the new measures posed "a survival risk" to British steel production.

Unions and industry leaders urged Keir Starmer to start negotiations immediately with the European Union on nation-specific duty-free quotas, noting that the United Kingdom was now the EU's primary trading partner.

Industry Background

Sector representatives in the EU have also been warning for months that the European steel sector confronts being "eliminated" through the increased duties on exports to the US along with high energy costs and low-cost Chinese imports.

The steel industry on in both the UK and EU is considered a essential sector, supplying basic materials in products ranging from building frameworks, renewable energy equipment and railways to dishwashers and kitchenware.

Adoption and Future Actions

The new measures require approval by member states and the EU legislature, with the European Commission president urging national governments and European parliament members to move quickly in backing the initiative.

If the plan is ratified, the EU will reduce its current duty-free quota by forty-seven percent to 18.3m tonnes a annually, a level last seen in 2013. It will impose a fifty percent duty on foreign steel exceeding the limit and require nations exporting into the bloc to state where the steel was melted and poured to avoid bypassing of the sanctions.

Exceptions and Global Partnerships

Norway, Iceland, and Liechtenstein will be exempt from import limits or duties due to their close trading relationship in the EEA, the EU has confirmed.

Alongside the proposal, the EU is pursuing a "metals alliance" with the United States to ringfence their national industries from overcapacity.

The European Union needs to act now, and firmly, before all lights go out in significant portions of the EU steel industry and its value chains.