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EU officials revealed they will mirror Donald Trump's import duties on steel, effectively doubling levies on foreign steel to 50% in a move described as "an existential threat" to the industry in Britain.

Major Challenge for UK Steel Exports

With eighty percent of British exports destined for the EU, this change creates the UK steel industry's biggest ever challenge, as stated by the industry association representing the sector.

New EU Proposals and Rules

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

The European steel industry faced potential collapse – we are protecting it so that investments can be made, reduce emissions, and become competitive again.

Replacement of Existing System

The proposals are intended to replace a quota system that has been in operation for the past seven years and which is set to expire in 2026 and is now seen as outdated. To do nothing could have been "disastrous" for the sector, a European official said.

Sector Reaction and Concerns

Nevertheless, industry representatives, from the trade association British Steel, said EU increasing duties would create "the most severe challenge the British steel sector has ever faced".

There were calls for the UK authorities to "acknowledge the critical necessity to put in place its own measures to defend" the UK steel industry – which is affected by a 25% tariff imposed by the US 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 numerous steel companies.

Union and Government Pressure

Union leaders, assistant general secretary at labor union Community, stated the proposed changes represented "an existential threat" to UK steel.

Labor and business representatives urged the UK government to begin talks urgently with the European Union on country-specific tariff exemptions, noting that the United Kingdom was now the EU's primary export market.

Industry Background

Sector representatives in the EU have repeatedly cautioned for months that their own industry confronts being "eliminated" through the increased duties on exports to the US along with high energy costs and cheap Chinese competition.

Steel on in both the UK and EU is considered a foundational industry, supplying elemental components in everything from building frameworks, wind turbines and transport infrastructure to household appliances and cutlery.

Implementation and Future Actions

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

If the plan is ratified, the European Union 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 tariff on foreign steel exceeding the limit and oblige nations shipping to the bloc to declare the production origin to avoid bypassing of the sanctions.

Exceptions and Global Partnerships

Norway, Iceland, and Liechtenstein will not be subject to tariff quotas or tariffs due to their close trading relationship in the European Economic Area, the European Union has confirmed.

Alongside the proposal, the European Union is seeking a "metals alliance" with the United States to protect their national industries from overcapacity.

EU must take immediate action, and firmly, prior to operations cease in significant portions of the European steel sector and its supply networks.