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The European Union declared plans to mirror the United States' import duties on steel, increasing to double levies on imports to 50% in a action described as "a critical danger" to the sector in Britain.

Major Challenge for UK Steel Industry

Given that eighty percent of British exports going to the European Union, this policy shift represents the UK steel industry's largest challenge, as stated by the industry association representing the sector.

European Commission Proposals and Regulations

Through its proposal submitted to the European parliament this week, the EU executive also proposed reducing the existing quota for duty-free imports and requiring foreign suppliers to disclose the origin of steel production to prevent China sneaking products in through other countries.

The European steel industry faced potential collapse – we are protecting it so that it can invest, decarbonise, and become competitive again.

Replacement of Current Framework

The proposals are designed to replace a import framework that has been in operation for the last seven years and which is due to expire in 2026 and is now considered outdated. To do nothing could have been "disastrous" for the sector, one EU official stated.

Industry Reaction and Concerns

Nevertheless, Gareth Stace, from the industry body UK Steel, stated Brussels increasing duties would pose "the most severe challenge the UK steel industry has encountered".

He called on the UK authorities to "recognise the critical necessity to implement its own measures to defend" the UK steel industry – which is affected by a twenty-five percent tariff from the US recently – from the risk of millions of tonnes of world steel redirected from US and European markets.

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

Labor and Political Calls

Alasdair McDiarmid, representative at labor union the industry union, stated the proposed changes posed "a survival risk" to UK steel.

Unions and industry leaders urged the UK government to start negotiations immediately with the European Union on country-specific tariff exemptions, pointing out that the United Kingdom was now the EU's No 1 trading partner.

Industry Background

Sector representatives 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 exports to the US combined with rising energy prices and low-cost Chinese imports.

Steel on in both the UK and EU is described as a essential sector, supplying basic materials in everything from building frameworks, wind turbines and railways to dishwashers and cutlery.

Adoption and Future Actions

The new measures require approval by member states and the European parliament, with the EU executive head urging national governments and European parliament members to move quickly in support of the proposal.

Should approval be granted, the European Union will reduce its current duty-free quota by forty-seven percent to 18.3 million tons a annually, a level last seen in 2013. It will apply a fifty percent duty on foreign steel beyond the quota and oblige countries exporting into the bloc to state the production origin to prevent circumvention of the sanctions.

Exceptions and International Cooperation

These European nations will be exempt from import limits or tariffs due to their close trading relationship in the EEA, the European Union has confirmed.

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

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