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EU officials revealed plans to match the United States' steel tariffs, effectively doubling levies on imports to 50% in a action condemned as "a critical danger" to the sector in Britain.

Unprecedented Crisis for British Steel Industry

Given that 80% of British exports destined for the European Union, this change poses the UK steel industry's most severe challenge, as stated by the lobby group speaking for the sector.

New EU Proposals and Regulations

Through its proposal presented to the European parliament on Tuesday, the EU executive additionally suggested cutting the existing quota for duty-free imports and requiring foreign suppliers to state where the steel was melted and poured to stop China sneaking products in through other countries.

The European steel industry stood at the brink of failure – we are protecting it so that investments can be made, decarbonise, and become competitive again.

Replacement of Current Framework

The proposals are intended to supersede a import framework that has been functioning for the last seven years and which is due to expire in 2026 and is now seen as not fit for purpose. Inaction could have been "disastrous" for the sector, one EU official said.

Sector Response and Concerns

However, Gareth Stace, from the industry body UK Steel, stated Brussels doubling its tariffs would create "the biggest crisis the UK steel industry has ever faced".

He called on the UK authorities to "acknowledge the critical necessity to put in place its own measures to protect" the British steel sector – which is still reeling from a 25% duty imposed by the US recently – from the risk of vast quantities of global steel redirected from US and European markets.

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

Union and Political Calls

Alasdair McDiarmid, representative at labor union Community, stated the proposed changes posed "a survival risk" to British steel production.

Unions and industry leaders called on Keir Starmer to begin talks urgently with the European Union on nation-specific duty-free quotas, pointing out that the United Kingdom was now the European Union's No 1 export market.

Industry Background

Sector representatives in the European Union have repeatedly cautioned for several months that the European steel sector faces being "wiped out" through the increased duties on American market shipments combined with rising energy prices and cheap Chinese competition.

Steel on both sides of the Channel is considered a foundational industry, providing elemental components in products ranging from building frameworks, renewable energy equipment and transport infrastructure to household appliances and cutlery.

Implementation and Future Actions

The new measures require approval by EU nations and the EU legislature, with the European Commission president calling on member states and European parliament members to move quickly in backing the proposal.

Should approval be granted, the European Union will cut its current duty-free quota by 47% to 18.3 million tons a annually, a volume previously recorded in 2013. It will impose a fifty percent duty on foreign steel beyond the quota and oblige countries shipping to the bloc to state where the steel was melted and poured to avoid bypassing of the measures.

Exemptions and Global Partnerships

These European nations will be exempt from import limits or duties because of their strong economic ties in the European Economic Area, the EU has said.

Alongside the proposal, the EU is seeking a "metals alliance" with the US to ringfence their respective economies from excess production.

EU must take immediate action, and firmly, prior to all lights go out in large parts of the EU steel industry and its value chains.