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EU officials declared they will match Donald Trump's import duties on steel, increasing to double levies on foreign steel to fifty percent in a decision described as "a survival risk" to the sector in the UK.

Major Challenge for British Steel Exports

Given that eighty percent of UK steel shipments destined for the European Union, this policy shift creates the UK steel industry's most severe crisis, according to the industry association representing the sector.

European Commission Measures and Regulations

In its plan presented to the European parliament this week, the European Commission also proposed reducing the current allowance for duty-free imports and obliging international producers to disclose the origin of steel production to stop Chinese producers diverting exports through other countries.

EU steel sector faced potential collapse – we are protecting it so that it can invest, reduce emissions, and regain competitiveness.

Overhaul of Current Framework

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framework that has been functioning for the past seven years and which is set to expire in 2026 and is now considered outdated. Inaction could have been "catastrophic" for the sector, a European official stated.

Sector Response and Warnings

However, industry representatives, from the industry body UK Steel, stated Brussels increasing duties would pose "the biggest crisis the UK steel industry has ever faced".

There were calls for the government to "acknowledge the critical necessity to put in place domestic protections to defend" the UK steel industry – which is still reeling from a 25% tariff from Trump earlier this year – from the risk of millions of tonnes of global steel redirected from American and EU markets.

This surge in foreign steel "might prove fatal for many of our remaining steel companies.

Labor and Government Calls

Union leaders, assistant general secretary at labor union the industry union, stated the proposed changes represented "a survival risk" to UK steel.

Unions and industry leaders urged Keir Starmer to begin talks urgently with the European Union on country-specific duty-free quotas, pointing out that the United Kingdom was now the EU's No 1 trading partner.

Industry Background

Industry leaders in the European Union have also been warning for several months that the European steel sector confronts being "wiped out" through the new 50% tariffs on American market shipments combined with high energy costs and low-cost Chinese imports.

Steel on both sides of the Channel is considered a essential sector, providing elemental components in products ranging from skyscraper structures, wind turbines and railways to dishwashers and cutlery.

Implementation and Next Steps

These proposals require approval by EU nations and the EU legislature, with the EU executive head calling on national governments and European parliament members to act fast in support of the proposal.

If the plan is ratified, the EU will reduce its existing tariff-free allowance by 47% to 18.3m tonnes a annually, a level previously recorded in 2013. It will apply a fifty percent duty on imports exceeding the limit and oblige nations shipping to the EU to declare the production origin to prevent circumvention of the sanctions.

Exceptions and Global Partnerships

Norway, Iceland, and Liechtenstein will be exempt from import limits or tariffs due to their strong economic ties in the European Economic Area, the EU has said.

In addition to these measures, the European Union is pursuing a "metals alliance" with the United States to ringfence their respective economies from overcapacity.

The European Union needs to act now, and decisively, prior to operations cease in significant portions of the European steel sector and its value chains.