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EU officials declared plans to match Donald Trump's import duties on steel, increasing to double taxes on imports to fifty percent in a decision described as "a survival risk" to the industry in Britain.

Unprecedented Crisis for UK Steel Exports

Given that eighty percent of British exports destined for the EU, this policy shift creates the UK steel industry's most severe crisis, according to the lobby group representing the industry.

New EU Measures and Rules

In its plan presented to the EU legislature on Tuesday, the European Commission additionally suggested reducing the existing quota for tariff-exempt steel and requiring foreign suppliers to disclose the origin of steel production to stop Chinese producers diverting exports through other countries.

The European steel industry was on the verge of collapse – these measures safeguard it so that investments can be made, reduce emissions, and regain competitiveness.

Overhaul of Current Framework

The proposals are intended to supersede a quota system that has been in operation for the past seven years and which is due to expire in 2026 and is now considered outdated. Inaction could have been "fatal" for the sector, a European official stated.

Industry Reaction and Concerns

However, industry representatives, from the industry body British Steel, said Brussels doubling its tariffs would pose "the most severe challenge the UK steel industry has encountered".

He called on the UK authorities to "recognise the urgent need to implement domestic protections to defend" the British steel sector – which is affected by a twenty-five percent tariff imposed by the US earlier this year – from the risk of millions of tonnes of global steel redirected from US and European markets.

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

Labor and Political Calls

Alasdair McDiarmid, assistant general secretary at labor union Community, said the proposed changes represented "a survival risk" to British steel production.

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

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 increased duties on exports to the US combined with rising energy prices and low-cost Chinese imports.

Steel on in both the UK and EU is described as a foundational industry, providing basic materials in everything from building frameworks, wind turbines and transport infrastructure to dishwashers and cutlery.

Adoption and Next Steps

These proposals must be agreed by EU nations and the European parliament, with the European Commission president urging member states and MEPs to act fast in backing the initiative.

If the plan is ratified, the European Union will cut its existing tariff-free allowance by 47% to 18.3 million tons a annually, a volume last seen in 2013. It will impose a 50% duty on imports beyond the quota and require countries exporting into the bloc to state the production origin to prevent circumvention of the measures.

Exceptions and International Cooperation

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

Alongside the proposal, the EU is pursuing a "steel partnership" with the United States to ringfence their national industries from excess production.

The European Union must take immediate action, and decisively, before all lights go out in large parts of the EU steel industry and its value chains.