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The European Union revealed they will mirror Donald Trump's steel tariffs, increasing to double taxes on imports to fifty percent in a decision condemned as "an existential threat" to the sector in Britain.

Unprecedented Crisis for UK Steel Industry

With eighty percent of UK steel shipments going to the European Union, this policy shift poses the UK steel industry's largest challenge, according to the industry association speaking for the industry.

European Commission Proposals and Regulations

In its plan presented to the European parliament on Tuesday, the European Commission additionally suggested cutting the current allowance for duty-free imports and obliging foreign suppliers to declare where the steel was melted and poured to stop China sneaking products in through third nations.

The European steel industry faced potential collapse – these measures safeguard it so that it can invest, reduce emissions, and become competitive again.

Replacement of Current Framework

These measures are designed to supersede 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 not fit for purpose. Inaction could have been "disastrous" for the industry, a European official stated.

Sector Reaction and Warnings

However, Gareth Stace, head of the trade association British Steel, said Brussels doubling its tariffs would create "the biggest crisis the British steel sector has encountered".

There were calls for the government to "acknowledge the critical necessity to implement its own measures to protect" the UK steel industry – which is affected by a twenty-five percent duty imposed by Trump recently – from the threat of millions of tonnes of world steel diverted away from US and European markets.

This flood of imports "might prove fatal for many of our remaining steel companies.

Union and Political Pressure

Alasdair McDiarmid, assistant general secretary at steelworkers' union the industry union, said the proposed changes posed "an existential threat" to British steel production.

Labor and business representatives urged the UK government to start negotiations immediately with the EU on nation-specific tariff exemptions, noting that the UK was now the European Union's No 1 trading partner.

Broader Context

Sector representatives in the EU have repeatedly cautioned for months that the European steel sector confronts being "eliminated" through the new 50% tariffs on American market shipments combined with rising energy prices and cheap Chinese competition.

The steel industry on in both the UK and EU is considered a foundational industry, providing basic materials in products ranging from building frameworks, renewable energy equipment and transport infrastructure to dishwashers and kitchenware.

Implementation and Next Steps

These proposals must be agreed by EU nations and the EU legislature, with the European Commission president calling on national governments and MEPs to act fast in support of the initiative.

Should approval be granted, the European Union will reduce its current duty-free quota by forty-seven percent to 18.3m tonnes a annually, a level previously recorded in 2013. It will apply a fifty percent duty on foreign steel exceeding the limit and require countries shipping to the EU to declare where the steel was melted and poured to prevent circumvention of the sanctions.

Exemptions and Global Partnerships

These European nations will not be subject to import limits or tariffs because of their strong economic ties in the EEA, the EU has said.

Alongside the proposal, the EU is pursuing a "steel partnership" with the United States to ringfence their national industries from excess production.

EU needs to act now, and decisively, before operations cease in large parts of the EU steel industry and its supply networks.