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The European Union have announced they will match the United States' steel tariffs, increasing to double taxes on foreign steel to 50% in a move condemned as "an existential threat" to the industry in the UK.

Major Challenge for British Steel Industry

With eighty percent of British exports destined for the European Union, this policy shift poses the UK steel industry's most severe challenge, according to the industry association speaking for the sector.

European Commission Measures and Regulations

In its plan presented to the EU legislature on Tuesday, the European Commission also proposed cutting the current allowance for tariff-exempt steel and obliging foreign suppliers to disclose the origin of steel production to prevent China diverting exports through third nations.

EU steel sector stood at the brink of failure – we are protecting it so that it can invest, reduce emissions, and become competitive again.

Overhaul of Existing System

The proposals are designed to supersede a quota system that has been functioning for the last seven years and which is set to expire in 2026 and is now considered ineffective. Inaction could have been "catastrophic" for the industry, one EU official said.

Sector Response and Concerns

Nevertheless, industry representatives, head of the trade association UK Steel, stated EU increasing duties would create "the most severe challenge the British steel sector has ever faced".

There were calls for the UK authorities to "recognise the urgent need to implement its own measures to protect" the British steel sector – which is affected by a twenty-five percent duty from Trump recently – from the threat of millions of tonnes of world steel diverted away from American and EU markets.

This flood of imports "could be fatal for many of our remaining steel companies.

Labor and Government Calls

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

Unions and industry leaders urged Keir Starmer to start negotiations immediately with the EU on nation-specific tariff exemptions, pointing out that the United Kingdom was now the EU's primary export market.

Industry Background

Sector representatives in the EU have repeatedly cautioned for months that their own industry 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 described as a essential sector, supplying basic materials in products ranging from skyscraper structures, renewable energy equipment and transport infrastructure to dishwashers and cutlery.

Adoption and Next Steps

These proposals must be agreed by member states and the European parliament, with the European Commission president calling on national governments and MEPs to act fast in backing the proposal.

Should approval be granted, the European Union will cut its existing tariff-free allowance by forty-seven percent to 18.3m tonnes a annually, a level previously recorded in 2013. It will impose a 50% duty on imports exceeding the limit and require countries exporting into the bloc to state where the steel was melted and poured to prevent circumvention of the sanctions.

Exceptions and International Cooperation

Norway, Iceland, and Liechtenstein will not be subject to tariff quotas or duties because of their strong economic ties in the European Economic Area, the European Union has confirmed.

Alongside the proposal, the European Union is seeking a "metals alliance" with the US to protect their respective economies from overcapacity.

The European Union needs to act now, and firmly, before operations cease in large parts of the European steel sector and its supply networks.