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EU officials declared plans to match the United States' import duties on steel, increasing to double taxes on foreign steel to fifty percent in a action described as "a survival risk" to the sector in Britain.

Unprecedented Crisis for British Steel Industry

Given that 80% of UK steel shipments going to the EU, this change represents the British steel sector's most severe crisis, according to the lobby group speaking for the industry.

New EU Measures and Rules

Through its proposal presented to the European parliament on Tuesday, the European Commission also proposed cutting the current allowance for duty-free imports and requiring international producers to disclose the origin of steel production to prevent China sneaking products in through other countries.

The European steel industry stood at the brink of failure – we are protecting it so that investments can be made, reduce emissions, and regain competitiveness.

Overhaul of Existing System

The proposals are designed to replace a quota system that has been functioning for the last seven years and which is due to expire in 2026 and is now seen as outdated. To do nothing could have been "fatal" for the industry, one EU official said.

Industry Response and Concerns

However, Gareth Stace, from the industry body British Steel, said EU increasing duties would create "the most severe challenge the British steel sector has encountered".

He called on the UK authorities to "acknowledge the urgent need to put in place domestic protections to protect" the British steel sector – which is still reeling from a 25% tariff from the US earlier this year – from the risk of vast quantities of global steel redirected from US and European markets.

This surge in foreign steel "might prove fatal for numerous steel companies.

Labor and Political Calls

Alasdair McDiarmid, assistant general secretary at steelworkers' union the industry union, said the new measures represented "a survival risk" to British steel production.

Labor and business representatives urged Keir Starmer to start negotiations urgently with the EU on nation-specific duty-free quotas, pointing out that the UK was now the European Union's primary export market.

Industry Background

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

The steel industry on both sides of the Channel is described as a foundational industry, supplying basic materials in products ranging from skyscraper structures, wind turbines and transport infrastructure to dishwashers and cutlery.

Implementation and Next Steps

These proposals must be agreed by EU nations and the EU legislature, with the EU executive head urging national governments and MEPs to move quickly in backing the initiative.

Should approval be granted, the EU will reduce its existing tariff-free allowance by 47% to 18.3 million tons a annually, a volume last seen in 2013. It will apply a fifty percent tariff on imports beyond the quota and require countries exporting into the EU to state where the steel was melted and poured to avoid bypassing of the measures.

Exemptions and International Cooperation

Norway, Iceland, and Liechtenstein will be exempt from import limits or duties due to their close trading relationship in the European Economic Area, the EU has confirmed.

In addition to these measures, the European Union is seeking a "metals alliance" with the United States to ringfence their respective economies from overcapacity.

EU needs to act now, and firmly, prior to all lights go out in significant portions of the European steel sector and its supply networks.