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The European Union declared they will match the United States' steel tariffs, increasing to double taxes on foreign steel to fifty percent in a action described as "a critical danger" to the industry in the UK.

Major Challenge for UK Steel Exports

Given that 80% of UK steel shipments going to the EU, this policy shift poses the UK steel industry's biggest ever crisis, as stated by the lobby group speaking for the industry.

New EU Measures and Regulations

Through its proposal presented to the European parliament this week, the European Commission additionally suggested cutting the existing quota for tariff-exempt steel and requiring foreign suppliers to state where the steel was melted and poured to stop Chinese producers sneaking products in through other countries.

EU steel sector faced potential collapse – these measures safeguard it so that investments can be made, reduce emissions, and regain competitiveness.

Replacement of Current Framework

These measures are designed to replace a import framework that has been in operation for the past seven years and which is due to expire in 2026 and is now considered not fit for purpose. To do nothing could have been "disastrous" for the sector, a European official stated.

Sector Reaction and Concerns

However, industry representatives, from the industry body UK Steel, stated Brussels increasing duties would create "the most severe challenge the UK steel industry has ever faced".

He called on the government to "acknowledge the urgent need to put in place its own measures to protect" the British steel sector – which is still reeling from a twenty-five percent duty from Trump recently – from the threat of vast quantities of global steel redirected from American and EU markets.

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

Union and Political Pressure

Union leaders, assistant general secretary at steelworkers' union the industry union, stated the proposed changes represented "an existential threat" to British steel production.

Unions and industry leaders urged the UK government to start negotiations urgently with the EU on nation-specific duty-free quotas, noting that the UK was now the European Union's primary trading partner.

Industry Background

Industry leaders in the EU have also been warning for several months that their own industry faces being "wiped out" through the new 50% tariffs on exports to the US combined with rising energy prices and cheap Chinese competition.

Steel on in both the UK and EU is considered a essential sector, supplying basic materials in everything from building frameworks, renewable energy equipment and transport infrastructure to household appliances and kitchenware.

Adoption and Next Steps

These proposals require approval by member states and the EU legislature, with the EU executive head calling on member states and European parliament members to act fast in backing the initiative.

Should approval be granted, the EU will reduce its current duty-free quota by 47% to 18.3m tonnes a year, a level previously recorded in 2013. It will impose a 50% tariff on foreign steel beyond the quota and oblige nations shipping to the EU to state where the steel was melted and poured to avoid bypassing of the sanctions.

Exceptions and International Cooperation

These European nations will be exempt from import limits or tariffs because of their close trading relationship in the European Economic Area, the European Union has confirmed.

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

The European Union must take immediate action, and decisively, prior to operations cease in large parts of the European steel sector and its supply networks.