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The European Union revealed plans to mirror Donald Trump's steel tariffs, increasing to double taxes on imports to 50% in a action condemned as "an existential threat" to the industry in Britain.

Major Challenge for British Steel Industry

With 80% of UK steel shipments going to the European Union, this policy shift creates the British steel sector's biggest ever challenge, according to the industry association speaking for the sector.

New EU Measures and Rules

Through its proposal submitted to the European parliament this week, the EU executive additionally suggested cutting the current allowance for duty-free imports and requiring international producers to declare the origin of steel production to prevent China diverting exports through other countries.

The European steel industry stood at the brink of failure – these measures safeguard it so that it can invest, decarbonise, and regain competitiveness.

Overhaul of Current Framework

The proposals 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quota system that has been in operation for the last seven years and which is set to expire in 2026 and is now seen as outdated. To do nothing could have been "fatal" for the industry, a European official stated.

Sector Reaction and Concerns

However, industry representatives, head of the industry body UK Steel, said EU doubling its tariffs would create "the biggest crisis the UK steel industry has encountered".

He called on the government to "acknowledge the critical necessity to implement domestic protections to protect" the UK steel industry – which is affected by a twenty-five percent tariff imposed by the US earlier this year – from the risk of millions of tonnes of global steel redirected from US and European markets.

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

Labor and Government Pressure

Alasdair McDiarmid, assistant general secretary at labor union the industry union, said the proposed changes represented "a survival risk" to UK steel.

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

Broader Context

Sector representatives in the European Union have repeatedly cautioned for months that the European steel sector confronts being "wiped out" through the new 50% tariffs on exports to the US combined with rising energy prices and cheap Chinese competition.

Steel on in both the UK and EU is described as a essential sector, supplying elemental components in everything from building frameworks, renewable energy equipment and railways to household appliances and cutlery.

Implementation and Next Steps

The new measures require approval by EU nations and the European parliament, with the EU executive head urging member states and European parliament members to act fast in backing the proposal.

Should approval be granted, the European Union will cut its current duty-free quota by 47% to 18.3 million tons a year, a volume last seen in 2013. It will apply a fifty percent duty on foreign steel beyond the quota and oblige countries exporting into the bloc to declare the production origin to avoid bypassing of the measures.

Exceptions and International Cooperation

These European nations will be exempt from import limits or tariffs due to their close trading relationship in the EEA, the European Union has said.

Alongside the proposal, the European Union is seeking a "steel partnership" with the United States to protect their respective economies from excess production.

EU must take immediate action, and decisively, prior to all lights go out in large parts of the EU steel industry and its value chains.