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The European Union revealed they will mirror Donald Trump's steel tariffs, increasing to double taxes on foreign steel to 50% in a decision condemned as "a critical danger" to the industry in the UK.

Major Challenge for British Steel Industry

With eighty percent of British exports going to the EU, this policy shift creates the British steel sector's biggest ever crisis, as stated by the lobby group representing the sector.

European Commission Proposals and Rules

In its plan presented to the European parliament this week, the European Commission also proposed cutting the current allowance for duty-free imports and requiring international producers to state the origin of steel production to stop Chinese producers sneaking products in through third nations.

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

Replacement 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 seen as not fit for purpose. Inaction could have been "fatal" for the industry, one EU official stated.

Sector Reaction and Concerns

However, Gareth Stace, head of the industry body British Steel, stated Brussels doubling its tariffs would pose "the biggest crisis the British steel sector has encountered".

He called on the UK authorities to "recognise the critical necessity to put in place domestic protections to defend" the UK steel industry – which is still reeling from a 25% duty imposed by the US earlier this year – from the threat of millions of tonnes of global steel redirected from US and European markets.

This surge in foreign steel "could be fatal for numerous steel companies.

Labor and Government Calls

Union leaders, representative at labor union Community, said the proposed changes posed "a survival risk" to British steel production.

Labor and business representatives urged the UK government to start negotiations urgently with the EU on nation-specific tariff exemptions, noting that the United Kingdom was now the EU's primary trading partner.

Broader Context

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 in both the UK and EU is considered a essential sector, supplying basic materials in products ranging from building frameworks, renewable energy equipment and railways to household appliances and kitchenware.

Implementation and Future Actions

The new measures must be agreed by EU nations and the EU legislature, with the European Commission president urging member states and European parliament members to move quickly in backing the proposal.

If the plan is ratified, the EU will reduce its current duty-free quota by 47% to 18.3m tonnes a year, a volume last seen in 2013. It will apply a 50% tariff on imports exceeding the limit and oblige nations shipping to the bloc to state where the steel was melted and poured to prevent circumvention of the measures.

Exceptions and International Cooperation

These European nations will not be subject to import limits or tariffs because of their close trading relationship in the European Economic Area, the EU has said.

In addition to these measures, the European Union is pursuing a "metals alliance" with the US to protect their respective economies from excess production.

EU needs to act now, and decisively, prior to operations cease in significant portions of the EU steel industry and its supply networks.