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The European Union revealed they will mirror the United States' steel tariffs, increasing to double taxes on imports to fifty percent in a decision condemned as "a survival risk" to the sector in Britain.

Major Challenge for UK Steel Exports

Given that 80% of British exports destined for the EU, this change poses the UK steel industry's biggest ever crisis, as stated by the lobby group representing the sector.

European Commission Measures and Rules

Through its proposal submitted to the European parliament on Tuesday, the EU executive also proposed cutting the existing quota for duty-free imports and requiring international producers to state where the steel was melted and poured to stop Chinese producers sneaking products in through third nations.

The European steel industry stood at the brink of failure – we are protecting it so that it can invest, reduce emissions, and regain competitiveness.

Overhaul of Current Framework

These measures are designed to supersede a quota system that has been functioning for the past seven years and which is set to expire in 2026 and is now considered not fit for purpose. To do nothing could have been "fatal" for the sector, one EU official stated.

Sector Response and Warnings

Nevertheless, Gareth Stace, head of the trade association British Steel, said Brussels doubling its tariffs would create "the most severe challenge the UK steel industry has encountered".

There were calls for the government to "acknowledge the critical necessity to put in place its own measures to protect" the UK steel industry – which is affected by a 25% tariff from the US recently – from the threat of millions of tonnes of world steel diverted away from US and European markets.

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

Labor and Government Pressure

Union leaders, assistant general secretary at steelworkers' union the industry union, said the proposed changes posed "an existential threat" to British steel production.

Unions and industry leaders called on Keir Starmer to begin talks urgently with the EU on country-specific duty-free quotas, noting that the UK was now the European Union's No 1 export market.

Broader Context

Sector representatives in the EU have repeatedly cautioned for several months that their own industry confronts being "eliminated" through the new 50% tariffs on American market shipments combined with high energy costs and low-cost Chinese imports.

The steel industry on in both the UK and EU is considered a essential sector, supplying elemental components in everything from building frameworks, wind turbines and railways to household appliances and kitchenware.

Adoption and Next Steps

These proposals must be agreed by member states and the EU legislature, with the European Commission president calling on national governments 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 47% to 18.3m tonnes a annually, a level last seen in 2013. It will impose a 50% tariff on imports exceeding the limit and require countries shipping to the EU to declare the production origin to avoid bypassing of the measures.

Exceptions and Global Partnerships

These European nations will not be subject to import limits or duties due to their strong economic ties in the EEA, the European Union has said.

In addition to these measures, the EU is pursuing a "steel partnership" with the United States to protect their respective economies from overcapacity.

EU needs to act now, and decisively, before all lights go out in large parts of the European steel sector and its value chains.