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EU officials have announced they will mirror Donald Trump's import duties on steel, effectively doubling levies on imports to 50% in a decision described as "a critical danger" to the industry in Britain.

Unprecedented Crisis for British Steel Exports

With eighty percent of UK steel shipments destined for the European Union, this policy shift represents the British steel sector's biggest ever crisis, according to the industry association speaking for the industry.

New EU Measures and Regulations

In its plan presented to the EU legislature on Tuesday, the European Commission additionally suggested slashing the existing quota for tariff-exempt steel and requiring international producers to declare where the steel was melted and poured to stop China diverting exports through other countries.

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

Overhaul of Existing System

The proposals are designed to supersede a quota system that has been functioning for the past seven years and which is due to expire in 2026 and is now seen as outdated. To do nothing could have been "fatal" for the industry, a European official said.

Industry Response and Concerns

However, industry representatives, head of the trade association British Steel, stated Brussels increasing duties would pose "the biggest crisis the British steel sector has encountered".

There were calls for the government to "recognise the critical necessity to put in place its own measures to defend" the British steel sector – which is affected by a twenty-five percent tariff from Trump earlier this year – from the threat of millions of tonnes of world steel redirected from US and European markets.

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

Union and Government Pressure

Union leaders, representative at steelworkers' union Community, said the new measures represented "a survival risk" to British steel production.

Labor and business representatives called on Keir Starmer to begin talks immediately with the EU on country-specific tariff exemptions, noting that the United Kingdom was now the EU's primary export market.

Broader Context

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

Steel on in both the UK and EU is considered a essential sector, providing basic materials in everything from skyscraper structures, wind turbines and transport infrastructure to household appliances and kitchenware.

Adoption and Next Steps

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

If the plan is ratified, the European Union will cut its current duty-free quota by 47% to 18.3 million tons a annually, a level last seen in 2013. It will apply a fifty percent duty on imports exceeding the limit and require nations exporting into the EU to state where the steel was melted and poured to avoid bypassing of the sanctions.

Exemptions and Global Partnerships

Norway, Iceland, and Liechtenstein will be exempt from tariff quotas or tariffs because of their strong economic ties in the EEA, the EU has confirmed.

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

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