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The European Union have announced they will match Donald Trump's import duties on steel, effectively doubling levies on imports to 50% in a action condemned as "a critical danger" to the sector in Britain.

Major Challenge for British Steel Industry

With eighty percent of UK steel shipments going to the European Union, this policy shift poses the UK steel industry's most severe challenge, as stated by the industry association speaking for the sector.

European Commission Proposals and Rules

In its plan submitted to the European parliament this week, the EU executive additionally suggested slashing the current allowance for duty-free imports and obliging international producers to disclose the origin of steel production to prevent Chinese producers 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.

Replacement of Existing System

The proposals are intended to replace a import framework that has been in operation for the last seven years and which is set to expire in 2026 and is now seen as not fit for purpose. To do nothing could have been "catastrophic" for the industry, a European official said.

Industry Reaction and Concerns

Nevertheless, Gareth Stace, 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 "recognise the critical necessity to implement its own measures to protect" the UK steel industry – which is affected by a twenty-five percent tariff imposed by Trump recently – from the threat of millions of tonnes of global steel diverted away from US and European markets.

This surge in foreign steel "might prove fatal for numerous steel companies.

Union and Political Pressure

Alasdair McDiarmid, representative at steelworkers' union the industry union, stated the new measures posed "a survival risk" to British steel production.

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

Broader Context

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

The steel industry on in both the UK and EU is described as a essential sector, providing elemental components in everything from building frameworks, wind turbines and transport infrastructure to dishwashers and cutlery.

Implementation and Next Steps

The new measures must be agreed by EU nations and the European parliament, with the EU executive head calling on member states and MEPs to act fast in backing the initiative.

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 impose a 50% tariff on imports exceeding the limit and oblige nations exporting into the EU to declare the production origin to prevent circumvention of the measures.

Exceptions and Global Partnerships

Norway, Iceland, and Liechtenstein will not be subject to tariff quotas or tariffs due to their close trading relationship in the EEA, the European Union has said.

In addition to these measures, the European Union is seeking a "metals alliance" with the US to protect their national industries from overcapacity.

EU needs to act now, and decisively, prior to all lights go out in significant portions of the European steel sector and its supply networks.