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The European Union declared they will match the United States' steel tariffs, effectively doubling levies on imports to fifty percent in a decision condemned as "an existential threat" to the industry in Britain.

Unprecedented Crisis for UK Steel Industry

With eighty percent of British exports going to the EU, this policy shift creates the British steel sector's largest crisis, as stated by the lobby group representing the industry.

New EU Measures and Regulations

Through its proposal submitted to the European parliament this week, the EU executive also proposed reducing the current allowance for duty-free imports and obliging foreign suppliers to state the origin of steel production to prevent China diverting exports through third nations.

EU steel sector was on the verge of collapse – we are protecting it so that investments can be made, decarbonise, and become competitive again.

Overhaul of Current Framework

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a quota system that has been functioning for the past seven years and which is due to expire in 2026 and is now seen as outdated.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 sector, one EU official stated.

Industry Reaction and Warnings

However, industry representatives, head of the industry body UK Steel, stated EU increasing duties would pose "the biggest crisis the British steel sector has ever faced".

There were calls for the UK authorities to "recognise the critical necessity to put in place domestic protections to protect" the UK steel industry – which is affected by a 25% duty from the US earlier this year – from the risk of vast quantities of global steel redirected from US and European markets.

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

Union and Political Calls

Union leaders, representative at steelworkers' union Community, stated the new measures represented "an existential threat" to UK steel.

Unions and industry leaders called on Keir Starmer to begin talks immediately with the EU on country-specific tariff exemptions, noting that the United Kingdom was now the European Union's primary export market.

Industry Background

Industry leaders in the European Union have repeatedly cautioned for several months that their own industry confronts being "wiped out" 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 considered a essential sector, supplying basic materials in products ranging from skyscraper structures, renewable energy equipment and transport infrastructure to household appliances and cutlery.

Adoption and Next Steps

The new measures must be agreed by EU nations and the European parliament, with the EU executive head urging member states and MEPs to move quickly in backing the proposal.

Should approval be granted, the European Union will cut its existing tariff-free allowance by 47% to 18.3 million tons a annually, a level last seen in 2013. It will apply a fifty percent duty on imports beyond the quota and oblige countries exporting into the bloc to state where the steel was melted and poured to avoid bypassing of the sanctions.

Exemptions and International Cooperation

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

In addition to these measures, the EU is seeking a "steel partnership" with the United States to protect their national industries from excess production.

EU needs to act now, and decisively, prior to operations cease in large parts of the EU steel industry and its supply networks.