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The European Union revealed they will match Donald Trump's steel tariffs, increasing to double levies on imports to 50% in a move condemned as "an existential threat" to the industry in Britain.

Major Challenge for British Steel Industry

Given that eighty percent of UK steel shipments going to the European Union, this change represents the British steel sector's biggest ever crisis, as stated by the industry association speaking for the industry.

New EU Measures and Rules

Through its proposal presented to the European parliament on Tuesday, the European Commission also proposed reducing the existing quota for duty-free imports and requiring foreign suppliers to disclose where the steel was melted and poured to prevent China sneaking products in through other countries.

The European steel industry faced potential collapse – these measures safeguard it so that it can invest, reduce emissions, and regain competitiveness.

Overhaul of Existing System

The proposals are intended to supersede a import framework that has been functioning for the past seven years and which is set to expire in 2026 and is now seen as ineffective. To do nothing could have been "fatal" for the sector, one EU official said.

Industry Reaction and Warnings

However, industry representatives, head of the industry body UK Steel, said EU increasing duties would pose "the biggest crisis the British steel sector has ever faced".

He called on the government to "acknowledge the urgent need to put in place domestic protections to protect" the British steel sector – which is still reeling from a twenty-five percent duty from the US earlier this year – from the risk of vast quantities of global steel diverted away from American and EU markets.

This flood of imports "might prove fatal for numerous steel companies.

Labor and Political Calls

Union leaders, assistant general secretary at labor union Community, said the proposed changes represented "an existential threat" to UK steel.

Labor and business representatives urged the UK government to start negotiations urgently with the EU on country-specific duty-free quotas, noting that the UK was now the European Union's No 1 export market.

Industry Background

Industry leaders in the EU have also been warning for months that the European steel sector faces being "eliminated" through the new 50% tariffs on exports to the US combined with rising energy prices and cheap Chinese competition.

Steel on in both the UK and EU is considered a foundational industry, supplying elemental components in products ranging from skyscraper structures, wind turbines and railways to dishwashers and kitchenware.

Adoption and Future Actions

The new measures require approval by member states and the European parliament, with the European Commission president calling on member states 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 18.3m tonnes a annually, a level previously recorded in 2013. It will impose a fifty percent duty on foreign steel exceeding the limit 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 not be subject to tariff quotas or tariffs because of their strong economic ties in the EEA, the European Union has said.

In addition to these measures, the European Union is seeking a "steel partnership" with the United States to ringfence their national industries from excess production.

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