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The European Union have announced plans to mirror Donald Trump's import duties on steel, effectively doubling taxes on imports to fifty percent in a action condemned as "a critical danger" to the sector in Britain.

Unprecedented Crisis for British Steel Industry

With 80% of British exports destined for the EU, this policy shift poses the UK steel industry's largest challenge, according to the lobby group speaking for the industry.

New EU Proposals and Rules

Through its proposal presented to the European parliament on Tuesday, the EU executive additionally suggested slashing the existing quota for tariff-exempt steel and requiring international producers to state where the steel was melted and poured to stop Chinese producers diverting exports through third nations.

EU steel sector faced potential collapse – we are protecting it so that investments can be made, reduce emissions, and regain competitiveness.

Replacement of Current Framework

These measures are designed to replace a quota system that has been functioning for the past seven years and which is due to expire in 2026 and is now considered ineffective. To do nothing could have been "catastrophic" for the industry, a European official stated.

Sector Response and Concerns

However, industry representatives, from the industry body British Steel, said EU increasing duties would create "the biggest crisis the British steel sector has ever faced".

There were calls for the government to "recognise the urgent need to implement its own measures to protect" the UK steel industry – which is still reeling from a twenty-five percent duty 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 fatal for many of our remaining steel companies.

Labor and Government Calls

Alasdair McDiarmid, assistant general secretary at labor union the industry union, stated the new measures represented "an existential threat" to British steel production.

Unions and industry leaders urged Keir Starmer to begin talks urgently with the European Union on country-specific duty-free quotas, noting that the United Kingdom was now the EU's No 1 export market.

Broader Context

Industry leaders 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 along with rising energy prices and low-cost Chinese imports.

The steel industry on both sides of the Channel is described as a essential sector, providing elemental components in products ranging from skyscraper structures, renewable energy equipment and railways 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 calling on national governments and European parliament members to act fast in backing the proposal.

If the plan is ratified, the EU will cut its current duty-free quota by 47% to 18.3m tonnes a year, a level last seen in 2013. It will apply a fifty percent duty on foreign steel exceeding the limit and require countries exporting into the EU to declare the production origin to prevent circumvention of the sanctions.

Exceptions and International Cooperation

These European nations will be exempt from import limits or duties due to their strong economic ties in the EEA, the European Union has said.

Alongside the proposal, the European Union is seeking a "steel partnership" with the US to protect their respective economies from overcapacity.

The European Union needs to act now, and decisively, before all lights go out in significant portions of the EU steel industry and its value chains.