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The European Union revealed they will mirror Donald Trump's import duties on steel, effectively doubling levies on foreign steel to fifty percent in a action described as "a critical danger" to the industry in the UK.

Unprecedented Crisis for UK Steel Industry

Given that 80% of British exports destined for the European Union, this policy shift represents the UK steel industry's largest crisis, according to the lobby group speaking for the industry.

European Commission Proposals and Rules

In its plan submitted to the European parliament this week, the EU executive additionally suggested cutting the existing quota for duty-free imports and obliging foreign suppliers to state where the steel was melted and poured to prevent China sneaking products in through third nations.

EU steel sector stood at the brink of failure – these measures safeguard it so that it can invest, decarbonise, and regain competitiveness.

Replacement of Current Framework

These measures are intended to replace a quota system that has been in operation for the last seven years and which is set to expire in 2026 and is now considered outdated. To do nothing could have been "catastrophic" for the industry, a European official stated.

Sector Response and Warnings

However, industry representatives, head of the industry body UK Steel, said Brussels increasing duties would pose "the most severe challenge the UK steel industry has ever faced".

There were calls for the UK authorities to "recognise the critical necessity to put in place its own measures to protect" the UK steel industry – which is still reeling from a twenty-five percent duty imposed by Trump earlier this year – from the threat of vast quantities of global steel diverted away from US and European markets.

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

Labor and Government Calls

Alasdair McDiarmid, assistant general secretary at labor union the industry union, said the new measures posed "a survival risk" to British steel production.

Labor and business representatives called on the UK government to start negotiations urgently with the EU on country-specific duty-free quotas, noting that the United Kingdom was now the European Union's primary export market.

Broader Context

Industry leaders in the European Union have also been warning for months that the European steel sector faces being "wiped out" through the increased duties on exports to the US along with rising energy prices and low-cost Chinese imports.

Steel on in both the UK and EU is described as a essential sector, supplying basic materials in products ranging from skyscraper structures, wind turbines and railways to dishwashers and cutlery.

Adoption and Future Actions

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

If the plan is ratified, the European Union will reduce its current duty-free quota by 47% to 18.3 million tons a year, a level last seen in 2013. It will apply a 50% duty on foreign steel exceeding the limit and require countries shipping to the bloc to state where the steel was melted and poured to prevent circumvention of the sanctions.

Exemptions and Global Partnerships

Norway, Iceland, and Liechtenstein will be exempt from import limits or tariffs due to their close trading relationship in the EEA, the European Union has confirmed.

Alongside the proposal, the European Union is pursuing a "steel partnership" with the United States to ringfence their respective economies from overcapacity.

EU needs to act now, and decisively, before operations cease in large parts of the European steel sector and its value chains.