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EU officials revealed they will match the United States' import duties on steel, increasing to double taxes on imports to fifty percent in a move condemned as "a critical danger" to the industry in Britain.

Major Challenge for UK Steel Exports

Given that 80% of British exports going to the EU, this policy shift poses the UK steel industry's most severe crisis, according to the industry association representing the sector.

New EU Proposals and Rules

In its plan presented to the European parliament on Tuesday, the European Commission additionally suggested reducing the existing quota for duty-free imports and requiring foreign suppliers to state the origin of steel production to stop Chinese producers diverting exports through other countries.

EU steel sector stood at the brink of failure – we are protecting it so that it can invest, reduce emissions, 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 due to expire in 2026 and is now seen as ineffective. Inaction could have been "disastrous" for the sector, a European official stated.

Industry Reaction and Warnings

However, Gareth Stace, from the industry body British Steel, stated Brussels doubling its tariffs would pose "the most severe challenge the British steel sector has encountered".

He called on the government to "recognise the urgent need to implement domestic protections to protect" the UK steel industry – which is affected by a twenty-five percent duty imposed by the US earlier this year – from the risk of millions of tonnes of world steel diverted away from American and EU markets.

This surge in foreign steel "might prove terminal for many of our remaining steel companies.

Union and Government Calls

Union leaders, assistant general secretary at steelworkers' union Community, stated the proposed changes posed "an existential threat" to British steel production.

Labor and business representatives called on the UK government to start negotiations immediately with the European Union on nation-specific duty-free quotas, noting that the UK was now the European Union's primary export market.

Broader Context

Sector representatives in the European Union have also been warning for several months that the European steel sector faces being "eliminated" through the increased duties on exports to the US combined with high energy costs and low-cost Chinese imports.

Steel on both sides of the Channel is described as a foundational industry, providing basic materials in products ranging from skyscraper structures, wind turbines and transport infrastructure to dishwashers and cutlery.

Adoption and Future Actions

The new measures must be agreed by member states and the European parliament, with the European Commission president urging member states and European parliament members to act fast in support of the proposal.

If the plan is ratified, the European Union will reduce its current duty-free quota by forty-seven percent to 18.3m tonnes a year, a level previously recorded in 2013. It will apply a 50% tariff on foreign steel exceeding the limit and oblige nations exporting into the EU to state the production origin to prevent circumvention of the sanctions.

Exceptions and Global Partnerships

These European nations will be exempt from tariff quotas or duties due to their strong economic ties 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 national industries from overcapacity.

EU needs to act now, and firmly, prior to operations cease in significant portions of the EU steel industry and its supply networks.