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EU officials have announced plans to match the United States' steel tariffs, effectively doubling levies on foreign steel to fifty percent in a action condemned as "a critical danger" to the industry in Britain.

Major Challenge for British Steel Industry

Given that 80% of UK steel shipments destined for the European Union, this change represents the British steel sector's most severe crisis, as stated by the industry association speaking for the sector.

New EU Proposals and Rules

In its plan submitted to the European parliament on Tuesday, the EU executive also proposed reducing the existing quota for duty-free imports and obliging foreign suppliers to declare where the steel was melted and poured to prevent China sneaking products in through third nations.

The European steel industry was on the verge of collapse – we are protecting it so that it can invest, decarbonise, and regain competitiveness.

Replacement of Current Framework

These measures are intended to supersede a import framework that has been functioning for the past seven years and which is due to expire in 2026 and is now considered ineffective. Inaction could have been "catastrophic" for the sector, one EU official said.

Sector Reaction and Concerns

Nevertheless, industry representatives, head of the industry body UK Steel, said EU increasing duties would create "the biggest crisis the British steel sector has ever faced".

There were calls for the government to "recognise the critical necessity to put in place its own measures to protect" the British steel sector – which is still reeling from a 25% tariff from the US earlier this year – from the threat of millions of tonnes of world steel redirected from American and EU markets.

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

Union and Political Pressure

Union leaders, assistant general secretary at labor union Community, stated the proposed changes posed "a survival risk" to British steel production.

Unions and industry leaders urged the UK government to begin talks immediately with the European Union on nation-specific tariff exemptions, pointing out that the United Kingdom was now the EU's primary trading partner.

Broader Context

Industry leaders in the European Union have repeatedly cautioned for several months that the European steel sector confronts being "eliminated" through the increased duties on American market shipments combined with rising energy prices and cheap Chinese competition.

Steel on in both the UK and EU is considered a foundational industry, providing basic materials in everything from skyscraper structures, renewable energy equipment and transport infrastructure to dishwashers and cutlery.

Adoption and Future Actions

These proposals require approval by EU nations and the European parliament, with the European Commission president urging member states and European parliament members to act fast in backing the proposal.

Should approval be granted, the EU will reduce its current duty-free quota by forty-seven percent to 18.3m tonnes a year, a volume previously recorded in 2013. It will impose a 50% duty on imports beyond the quota and require nations exporting into the bloc to state where the steel was melted and poured to prevent circumvention of the sanctions.

Exceptions and Global Partnerships

These European nations will not be subject to import limits or tariffs because of their close trading relationship in the EEA, the EU has said.

Alongside the proposal, the European Union 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 firmly, prior to all lights go out in large parts of the European steel sector and its value chains.