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The European Union revealed they will mirror the United States' import duties on steel, increasing to double levies on imports to fifty percent in a action described as "an existential threat" to the industry in Britain.

Unprecedented Crisis for British Steel Exports

With eighty percent of British exports destined for the European Union, this policy shift represents the British steel sector's most severe challenge, as stated by the lobby group speaking for the industry.

New EU Proposals and Rules

In its plan presented to the European parliament on Tuesday, the European Commission additionally suggested cutting the existing quota for duty-free imports and obliging international producers to declare the origin of steel production to prevent China diverting exports through other countries.

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

Overhaul of Existing System

These measures are designed to replace a quota system that has been in operation for the last seven years and which is due to expire in 2026 and is now considered not fit for purpose. Inaction could have been "catastrophic" for the industry, one EU official said.

Industry Reaction and Warnings

However, industry representatives, from the industry body British Steel, stated EU increasing duties would pose "the most severe challenge the UK steel industry has ever faced".

There were calls for the UK authorities to "recognise the urgent need to implement domestic protections to defend" the British steel sector – which is affected by a 25% duty from the US recently – from the risk of millions of tonnes of global steel diverted away from American and EU markets.

This flood of imports "might prove fatal for numerous steel companies.

Union and Political Pressure

Alasdair McDiarmid, representative at steelworkers' union the industry union, said the proposed changes represented "an existential threat" to UK steel.

Labor and business representatives called on the UK government to begin talks immediately with the EU on country-specific duty-free quotas, pointing out that the UK was now the EU's No 1 trading partner.

Industry Background

Sector representatives in the European Union have repeatedly cautioned for several months that the European steel sector faces being "wiped out" through the new 50% tariffs on exports to the US along with high energy costs and cheap Chinese competition.

Steel on both sides of the Channel is considered a foundational industry, providing elemental components in everything from building frameworks, wind turbines and railways to household appliances and cutlery.

Adoption and Future Actions

The new measures require approval by EU nations and the European parliament, with the EU executive head urging national governments and European parliament members to move quickly in support of the proposal.

If the plan is ratified, the EU will cut its existing tariff-free allowance by 47% to 18.3m tonnes a year, a volume previously recorded in 2013. It will apply a 50% duty on foreign steel beyond the quota and require nations shipping to the EU to declare the production origin to prevent circumvention of the sanctions.

Exceptions and Global Partnerships

Norway, Iceland, and Liechtenstein will be exempt from tariff quotas or duties due to their close trading relationship in the EEA, the European Union has confirmed.

In addition to these measures, the European Union is seeking a "metals alliance" with the United States to protect their national industries from overcapacity.

The European Union must take immediate action, and firmly, prior to operations cease in significant portions of the EU steel industry and its value chains.