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EU officials revealed they will mirror Donald Trump's import duties on steel, effectively doubling levies on foreign steel to fifty percent in a action described as "an existential threat" to the sector in the UK.

Unprecedented Crisis for British Steel Exports

With eighty percent of British exports going to the European Union, this change creates the British steel sector's largest crisis, as stated by the lobby group representing the industry.

New EU Measures and Regulations

Through its proposal presented to the EU legislature this week, the EU executive additionally suggested slashing the current allowance for tariff-exempt steel and requiring international producers to disclose the origin of steel production to stop China diverting exports through other countries.

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

Overhaul of Existing System

These measures are designed to replace a quota system that has been functioning for the last seven years and which is set to expire in 2026 and is now considered outdated. Inaction could have been "fatal" for the sector, one EU official said.

Industry Response and Warnings

However, industry representatives, head of the industry body UK Steel, said EU increasing duties would create "the most severe challenge the UK steel industry has ever faced".

He called on the government to "recognise the urgent need to implement its own measures to protect" the British steel sector – which is still reeling from a 25% duty imposed by the US recently – from the threat of vast quantities of global steel diverted away from American and EU markets.

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

Labor and Government Pressure

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

Unions and industry leaders called on the UK government to start negotiations urgently with the EU on country-specific tariff exemptions, 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 confronts being "wiped out" 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 considered a essential sector, providing basic materials in everything from skyscraper structures, renewable energy equipment and railways to dishwashers and kitchenware.

Adoption and Next Steps

The new measures must be agreed by member states and the EU legislature, with the EU executive head calling on member states and European parliament members to act fast in support of the initiative.

Should approval be granted, the European Union will reduce its current duty-free quota by forty-seven percent to 18.3m tonnes a annually, a level last seen in 2013. It will apply a fifty percent duty on foreign steel beyond the quota and require nations shipping to the bloc to state the production origin to avoid bypassing of the sanctions.

Exemptions and Global Partnerships

Norway, Iceland, and Liechtenstein will be exempt from tariff quotas or tariffs due to their strong economic ties in the EEA, the European Union has said.

In addition to these measures, the EU is seeking a "steel partnership" with the US to ringfence their respective economies from excess production.

EU must take immediate action, and firmly, prior to operations cease in significant portions of the EU steel industry and its value chains.