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The European Union revealed plans to match 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.

Major Challenge for British Steel Industry

With 80% of British exports destined for the European Union, this change poses the British steel sector's most severe crisis, according to the industry association speaking for the industry.

European Commission Measures and Regulations

In its plan presented to the European parliament this week, the European Commission also proposed cutting the existing quota for tariff-exempt steel and obliging foreign suppliers to disclose where the steel was melted and poured to stop China sneaking products in through third nations.

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

Overhaul 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. To do nothing could have been "disastrous" for the industry, one EU official stated.

Industry Reaction and Concerns

However, Gareth Stace, head of the trade association UK Steel, said EU doubling its tariffs would pose "the biggest crisis the British steel sector has ever faced".

He called on the UK authorities to "recognise the critical necessity to put in place domestic protections to defend" the British steel sector – which is affected by a 25% tariff from Trump earlier this year – from the threat of millions of tonnes of global steel redirected from American and EU markets.

This flood of imports "could be fatal for numerous steel companies.

Labor and Government Calls

Union leaders, representative at labor union Community, stated the new measures posed "a survival risk" to British steel production.

Unions and industry leaders urged Keir Starmer to begin talks urgently with the EU on nation-specific tariff exemptions, noting that the United Kingdom was now the European Union's No 1 trading partner.

Broader Context

Industry leaders in the European Union have repeatedly cautioned for several months that the European steel sector confronts being "wiped out" through the new 50% tariffs on American market shipments combined with rising energy prices and cheap Chinese competition.

The steel industry on both sides of the Channel is considered a essential sector, providing elemental components in everything from skyscraper structures, wind turbines and railways to household appliances and kitchenware.

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 MEPs to act fast in backing the initiative.

If the plan is ratified, the EU will cut its current duty-free quota by forty-seven percent to 18.3 million tons a year, a level last seen in 2013. It will impose a 50% duty on foreign steel beyond the quota and require nations exporting into the bloc to declare where the steel was melted and poured to avoid bypassing of the measures.

Exemptions and Global Partnerships

These European nations will not be subject to import limits or tariffs due to their strong economic ties in the EEA, the EU has said.

In addition to these measures, the EU is seeking a "steel partnership" with the US 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 European steel sector and its supply networks.