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The European Union declared plans to match Donald Trump's steel tariffs, effectively doubling levies on imports to fifty percent in a move condemned as "a survival risk" to the industry in Britain.

Major Challenge for British Steel Industry

With 80% of UK steel shipments going to the EU, this policy shift poses the UK steel industry's most severe challenge, according to the industry association speaking for the sector.

European Commission Proposals and Regulations

In its plan presented to the European parliament this week, the EU executive additionally suggested cutting the existing quota for duty-free imports and obliging foreign suppliers to state the origin of steel production to prevent China sneaking products in through other countries.

The European steel industry faced potential collapse – these measures safeguard it so that it can invest, reduce emissions, and become competitive again.

Replacement of Current Framework

The proposals are designed to replace a quota system that has been in operation for the past seven years and which is set to expire in 2026 and is now considered outdated. Inaction could have been "disastrous" for the industry, one EU official stated.

Sector Response and Warnings

Nevertheless, Gareth Stace, head of the industry body British Steel, said EU increasing duties would create "the most severe challenge the British steel sector has encountered".

There were calls for the government to "acknowledge the critical necessity to implement its own measures to defend" the UK steel industry – which is affected by a 25% tariff from Trump recently – from the threat of vast quantities of global steel redirected from US and European markets.

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

Union and Political Calls

Union leaders, representative at labor union the industry union, stated the proposed changes posed "an existential threat" to British steel production.

Labor and business representatives called on Keir Starmer to begin talks 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 several months that their own industry confronts being "eliminated" through the new 50% tariffs on exports to the US along with high energy costs and cheap Chinese competition.

The steel industry on both sides of the Channel is described as a foundational industry, providing basic materials in everything from skyscraper structures, wind turbines and railways to household appliances and cutlery.

Adoption and Next Steps

The new measures must be agreed by EU nations and the EU legislature, with the EU executive head calling on national governments and European parliament members to act fast in support of the proposal.

Should approval be granted, the EU will reduce its current duty-free quota by 47% to 18.3 million tons a annually, a level previously recorded in 2013. It will impose a 50% tariff on imports beyond the quota and oblige countries shipping to the bloc to declare the production origin to prevent circumvention of the sanctions.

Exemptions and Global Partnerships

Norway, Iceland, and Liechtenstein will not be subject to import limits or duties because of their close trading relationship in the EEA, the EU has said.

Alongside the proposal, the European Union is seeking a "metals alliance" with the United States to ringfence their respective economies from excess production.

EU needs to act now, and firmly, prior to all lights go out in significant portions of the European steel sector and its value chains.