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EU officials have announced they will mirror the United States' import duties on steel, effectively doubling taxes on foreign steel to fifty percent in a move described as "a critical danger" to the sector in the UK.

Unprecedented Crisis for UK Steel Exports

With 80% of British exports destined for the European Union, this change poses the UK steel industry's biggest ever crisis, as stated by the lobby group representing the sector.

New EU Proposals and Rules

Through its proposal submitted to the European parliament on Tuesday, the European Commission also proposed cutting the current allowance for tariff-exempt steel and obliging international producers to disclose where the steel was melted and poured to prevent China sneaking products in through other countries.

EU steel sector was on the verge of collapse – these measures safeguard it so that investments can be made, reduce emissions, and become competitive again.

Overhaul of Current Framework

The proposals are intended to supersede a quota system that has been functioning for the last seven years and which is set to expire in 2026 and is now seen as not fit for purpose. Inaction could have been "fatal" for the sector, one EU official stated.

Sector Response and Concerns

Nevertheless, Gareth Stace, head of the industry body British Steel, said Brussels increasing duties would create "the biggest crisis the UK steel industry has encountered".

There were calls for the UK authorities to "recognise the urgent need to put in place domestic protections to defend" the UK steel industry – which is still reeling from a 25% tariff imposed by the US earlier this year – from the threat of millions of tonnes of global steel redirected from US and European markets.

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

Union and Political Calls

Alasdair McDiarmid, representative at steelworkers' union Community, said the new measures represented "a survival risk" to British steel production.

Labor and business representatives called on Keir Starmer to begin talks urgently with the EU on nation-specific tariff exemptions, pointing out that the United Kingdom was now the European Union's primary trading partner.

Industry Background

Sector representatives in the European Union have also been warning for months that their own industry faces being "eliminated" through the increased duties on American market shipments along with rising energy prices and cheap Chinese competition.

The steel industry on in both the UK and EU is described as a foundational industry, providing basic materials in everything from skyscraper structures, renewable energy equipment and railways to household appliances and kitchenware.

Implementation and Future Actions

These proposals require approval by EU nations and the European parliament, with the EU executive head urging national governments and MEPs to act fast in backing the proposal.

Should approval be granted, the EU will cut its existing tariff-free allowance by 47% to 18.3m tonnes a year, a level last seen in 2013. It will impose a fifty percent duty on foreign steel beyond the quota and require nations shipping to the EU to state where the steel was melted and poured to prevent circumvention of the measures.

Exceptions and International Cooperation

Norway, Iceland, and Liechtenstein will be exempt from tariff quotas or tariffs because of their close trading relationship in the EEA, the EU has confirmed.

In addition to these measures, the European Union is seeking a "steel partnership" with the United States to ringfence their respective economies 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.