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EU officials declared they will match the United States' import duties on steel, increasing to double taxes on imports to 50% in a decision condemned as "an existential threat" to the industry in the UK.

Unprecedented Crisis for British Steel Exports

With 80% of British exports destined for the European Union, this policy shift creates the British steel sector's most severe challenge, as stated by the lobby group representing the industry.

New EU Measures and Regulations

In its plan presented to the European parliament this week, the EU executive also proposed cutting the existing quota for tariff-exempt steel and requiring foreign suppliers to disclose the origin of steel production to stop China sneaking products in through third nations.

The European steel industry stood at the brink of failure – these measures safeguard it so that it can invest, reduce emissions, and become competitive again.

Overhaul of Current Framework

These measures are intended to supersede a import framework that has been functioning for the past seven years and which is set to expire in 2026 and is now considered not fit for purpose. To do nothing could have been "catastrophic" for the industry, a European official said.

Industry Response and Warnings

Nevertheless, Gareth Stace, head of the industry body UK Steel, said Brussels doubling its tariffs would create "the biggest crisis the UK steel industry has encountered".

There were calls for the government to "recognise the urgent need to implement its own measures to protect" the British steel sector – which is affected by a twenty-five percent duty imposed by Trump earlier this year – from the risk of vast quantities of global steel redirected from US and European markets.

This flood of imports "could be fatal for many of our remaining steel companies.

Union and Political Calls

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

Labor and business representatives urged Keir Starmer to start negotiations urgently with the European Union on country-specific tariff exemptions, noting that the United Kingdom was now the EU's No 1 trading partner.

Industry Background

Industry leaders in the EU have also been warning for months that the European steel sector faces being "wiped out" through the new 50% tariffs on exports to the US combined with high energy costs and low-cost Chinese imports.

The steel industry on both sides of the Channel is considered a foundational industry, supplying basic materials in products ranging from building frameworks, wind turbines and railways to household appliances and cutlery.

Adoption and Next Steps

The new measures must be agreed by member states and the EU legislature, with the EU executive head urging member states and European parliament members to act fast in backing the initiative.

If the plan is ratified, the European Union will reduce its current duty-free quota by forty-seven percent to 18.3 million tons a annually, a volume previously recorded in 2013. It will impose a 50% tariff on foreign steel exceeding the limit and require nations exporting into the EU to state the production origin to avoid bypassing of the measures.

Exceptions and International Cooperation

Norway, Iceland, and Liechtenstein will not be subject to import limits or tariffs due to their strong economic ties in the European Economic Area, the European Union has confirmed.

Alongside the proposal, the European Union is pursuing a "metals alliance" with the US to ringfence their national industries from excess production.

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