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The European Union have announced they will match the United States' steel tariffs, effectively doubling levies on imports to fifty percent in a decision described as "a critical danger" to the industry in Britain.

Major Challenge for British Steel Industry

Given that 80% of UK steel shipments going to the EU, this policy shift represents the British steel sector's largest challenge, according to the industry association representing the sector.

European Commission Proposals and Regulations

In its plan presented to the European parliament on Tuesday, the EU executive additionally suggested cutting the existing quota for duty-free imports and requiring international producers to disclose the origin of steel production to stop Chinese producers sneaking products in through third nations.

EU steel sector faced potential collapse – we are protecting it so that it can invest, reduce emissions, and become competitive again.

Overhaul of Current Framework

These measures are intended to replace a quota system that has been in operation for the last seven years and which is set to expire in 2026 and is now considered outdated. Inaction could have been "catastrophic" for the industry, one EU official said.

Industry Response and Concerns

However, Gareth Stace, from the trade association British Steel, stated Brussels increasing duties would pose "the most severe challenge the British steel sector has ever faced".

There were calls for the government to "acknowledge the critical necessity to implement domestic protections to defend" the UK steel industry – which is affected by a 25% tariff imposed by the US earlier this year – from the risk of vast quantities of world steel redirected from American and EU markets.

This flood of imports "could be terminal for numerous steel companies.

Union and Political Calls

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

Unions and industry leaders urged the UK government to start negotiations immediately with the EU on nation-specific tariff exemptions, pointing out that the United Kingdom was now the EU's primary trading partner.

Broader Context

Industry leaders in the European Union have repeatedly cautioned for months that the European steel sector confronts being "wiped out" through the new 50% tariffs on American market shipments along with rising energy prices and cheap Chinese competition.

Steel on in both the UK and EU is described as a foundational industry, providing elemental components in everything from skyscraper structures, wind turbines and railways to dishwashers and kitchenware.

Implementation and Next Steps

The new measures require approval by EU nations and the EU legislature, with the European Commission president urging national governments and MEPs to act fast in backing the proposal.

If the plan is ratified, the European Union will cut its existing tariff-free allowance by forty-seven percent to 18.3m tonnes a annually, a volume last seen in 2013. It will apply a 50% duty on foreign steel exceeding the limit and oblige nations exporting into the bloc to state where the steel was melted and poured to avoid bypassing of the measures.

Exemptions and International Cooperation

These European nations will not be subject to import limits or duties because of their strong economic ties in the European Economic Area, the European Union has said.

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

The European Union needs to act now, and decisively, prior to operations cease in significant portions of the EU steel industry and its value chains.