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The European Union revealed they will mirror the United States' steel tariffs, increasing to double levies on imports to fifty percent in a action described as "an existential threat" to the sector in Britain.

Major Challenge for British Steel Exports

Given that eighty percent of UK steel shipments going to the EU, this policy shift poses the UK steel industry's biggest ever challenge, according to the industry association speaking for the sector.

New EU Measures and Regulations

In its plan submitted to the European parliament on Tuesday, the European Commission also proposed slashing the existing quota for tariff-exempt steel and obliging foreign suppliers to declare the origin of steel production to prevent Chinese producers diverting exports through third nations.

EU steel sector faced potential collapse – these measures safeguard it so that investments can be made, decarbonise, and regain competitiveness.

Replacement of Existing System

The proposals are intended to supersede a import framework that has been functioning for the last seven years and which is set to expire in 2026 and is now seen as ineffective. Inaction could have been "disastrous" for the sector, one EU official said.

Industry Response and Concerns

However, Gareth Stace, head of the industry body British Steel, said EU increasing duties would create "the biggest crisis the UK steel industry has ever faced".

He called on the government to "recognise the urgent need to implement domestic protections to protect" the British steel sector – which is affected by a 25% tariff from the US earlier this year – from the risk of millions of tonnes of global steel redirected from American and EU markets.

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

Labor and Government Calls

Union leaders, representative at labor union the industry union, stated the new measures represented "an existential threat" to UK steel.

Labor and business representatives urged the UK government to start negotiations urgently with the EU on nation-specific tariff exemptions, pointing out that the UK was now the EU's primary trading partner.

Broader Context

Sector representatives in the European Union have also been warning for 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 both sides of the Channel is described as a essential sector, supplying basic materials in products ranging from building frameworks, renewable energy equipment and railways to household appliances and cutlery.

Implementation and Next Steps

The new measures require approval by EU nations and the EU legislature, with the European Commission president urging national governments and European parliament members to act fast in support of the proposal.

Should approval be granted, the EU will reduce its current duty-free quota by 47% to 18.3m tonnes a annually, a volume last seen in 2013. It will impose a fifty percent duty on foreign steel exceeding the limit and oblige nations shipping to the EU to state where the steel was melted and poured to prevent circumvention of the measures.

Exemptions and Global Partnerships

These European nations will not be subject to tariff quotas or tariffs due to their close trading relationship in the European Economic Area, the EU has said.

In addition to these measures, the European Union is seeking a "metals alliance" with the United States to protect their national industries from excess production.

The European Union must take immediate action, and decisively, before operations cease in large parts of the European steel sector and its supply networks.