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EU officials have announced they will match Donald Trump's steel tariffs, increasing to double levies on imports to 50% in a decision condemned as "a critical danger" to the sector in Britain.

Major Challenge for UK Steel Exports

Given that 80% of UK steel shipments going to the European Union, this change represents the UK steel industry's most severe crisis, as stated by the lobby group representing the industry.

European Commission Measures and Regulations

Through its proposal presented to the European parliament on Tuesday, the EU executive additionally suggested reducing the existing quota for duty-free imports and requiring international producers to declare the origin of steel production to prevent China diverting exports through other countries.

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

Replacement of Existing System

The proposals are designed to replace a import framework that has been functioning for the last seven years and which is set to expire in 2026 and is now considered outdated. Inaction could have been "disastrous" for the industry, one EU official said.

Industry Reaction and Concerns

Nevertheless, industry representatives, from the industry body UK Steel, said EU doubling its tariffs would pose "the most severe challenge the British steel sector has ever faced".

There were calls for the UK authorities to "recognise the critical necessity to implement domestic protections to protect" the UK steel industry – which is affected by a twenty-five percent duty imposed by Trump earlier this year – from the risk of millions of tonnes of global steel redirected from American and EU markets.

This surge in foreign steel "could be terminal for many of our remaining steel companies.

Union and Government Calls

Union leaders, representative at labor union Community, stated the proposed changes posed "a survival risk" to UK steel.

Unions and industry leaders called on the UK government to start negotiations urgently with the EU on nation-specific tariff exemptions, noting that the UK was now the EU's primary trading partner.

Broader Context

Industry leaders in the EU have repeatedly cautioned for months that the European steel sector confronts being "eliminated" through the new 50% tariffs on exports to the US along with rising energy prices and cheap Chinese competition.

The steel industry on in both the UK and EU is described as a foundational industry, providing basic materials in products ranging from skyscraper structures, renewable energy equipment and railways to dishwashers and kitchenware.

Implementation and Next Steps

These proposals must be agreed by member states and the European parliament, with the EU executive head urging 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 previously recorded in 2013. It will impose a 50% duty on imports beyond the quota and require nations exporting into the EU to state the production origin to avoid bypassing of the measures.

Exemptions and Global Partnerships

These European nations will be exempt from import limits or duties due to their close trading relationship in the EEA, the EU has confirmed.

In addition to these measures, the European Union is pursuing a "steel partnership" with the US to ringfence their respective economies from overcapacity.

The European Union must take immediate action, and decisively, before operations cease in significant portions of the EU steel industry and its supply networks.