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The European Union declared they will adopt the United States' import duties on steel, effectively doubling levies on foreign steel to fifty percent in a decision condemned as "a critical danger" to the industry in Britain.

Major Challenge for UK Steel Industry

Given that eighty percent of UK steel shipments destined for the EU, this change represents the British steel sector's most severe crisis, as stated by 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 slashing the existing quota for duty-free imports and obliging international producers to state the origin of steel production to prevent China sneaking products in through other countries.

The European steel industry faced potential collapse – we are protecting it so that investments can be made, decarbonise, and become competitive again.

Replacement of Existing System

The proposals are intended to supersede a quota system that has been in operation for the last seven years and which is due to expire in 2026 and is now considered outdated. To do nothing could have been "catastrophic" for the sector, a European official stated.

Sector Reaction and Warnings

Nevertheless, Gareth Stace, head of the trade association UK Steel, said EU increasing duties would create "the biggest crisis the UK steel industry has ever faced".

There were calls for the UK authorities to "recognise the critical necessity to put in place domestic protections to protect" the UK steel industry – which is affected by a twenty-five percent duty from the US earlier this year – from the risk of millions of tonnes of world steel redirected from American and EU markets.

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

Labor and Political Pressure

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

Unions and industry leaders urged Keir Starmer to start negotiations urgently with the EU on country-specific tariff exemptions, noting that the UK was now the EU's primary trading partner.

Broader Context

Sector representatives in the EU have also been warning for months that their own industry confronts being "wiped out" through the new 50% tariffs on exports to the US along with rising energy prices and low-cost Chinese imports.

Steel on in both the UK and EU is described as a foundational industry, supplying basic materials in products ranging from skyscraper structures, wind turbines and railways to household appliances and kitchenware.

Implementation and Next Steps

These proposals must be agreed by member states and the EU legislature, with the EU executive head calling on member states and European parliament members to act fast in support of the proposal.

If the plan is ratified, the EU will cut its current duty-free quota by forty-seven percent to 18.3m tonnes a annually, a volume previously recorded in 2013. It will apply a 50% tariff on imports beyond the quota and oblige countries shipping to the EU to declare where the steel was melted and poured to prevent circumvention of the measures.

Exemptions and International Cooperation

Norway, Iceland, and Liechtenstein will not be subject to import limits or duties due to their strong economic ties in the EEA, the EU has confirmed.

Alongside the proposal, the EU is seeking a "steel partnership" with the US to protect their national industries from overcapacity.

The European Union must take immediate action, and firmly, before operations cease in large parts of the European steel sector and its value chains.