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The European Union revealed they will mirror the United States' steel tariffs, effectively doubling levies on foreign steel to 50% in a action condemned as "a survival risk" to the industry in the UK.

Major Challenge for UK Steel Industry

Given that eighty percent of British exports going to the EU, this change poses the British steel sector's most severe challenge, as stated by the industry association speaking for the industry.

European Commission Measures and Regulations

In its plan submitted to the European parliament this week, the European Commission additionally suggested reducing the current allowance for tariff-exempt steel and obliging foreign suppliers to disclose where the steel was melted and poured to stop China sneaking products in through other countries.

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

Replacement of Existing System

The proposals are designed to replace a quota system that has been functioning for the past seven years and which is set to expire in 2026 and is now seen as ineffective. Inaction could have been "fatal" for the industry, one EU official stated.

Sector Response and Concerns

However, industry representatives, head of the industry body UK Steel, stated Brussels doubling its tariffs would pose "the most severe challenge the UK steel industry has ever faced".

He called on the government to "recognise the critical necessity to implement its own measures to defend" the UK steel industry – which is affected by a twenty-five percent duty imposed by the US earlier this year – from the risk of vast quantities of global steel diverted away from American and EU markets.

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

Labor and Government Pressure

Alasdair McDiarmid, assistant general secretary at labor union the industry union, said the new measures posed "a survival risk" to UK steel.

Labor and business representatives called on Keir Starmer to start negotiations immediately with the EU on country-specific tariff exemptions, noting that the United Kingdom was now the European Union's primary trading partner.

Broader Context

Industry leaders in the EU have also been warning for months that the European steel sector faces being "wiped out" through the increased duties on American market shipments combined with high energy costs and low-cost Chinese imports.

Steel on both sides of the Channel is considered a foundational industry, providing basic materials in everything from building frameworks, wind turbines and transport infrastructure to household appliances and kitchenware.

Adoption and Next Steps

The new measures require approval by member states and the European parliament, with the EU executive head urging member states and MEPs to move quickly in backing the proposal.

If the plan is ratified, the European Union will reduce its existing tariff-free allowance by 47% to 18.3 million tons a year, a level last seen in 2013. It will impose a fifty percent tariff on imports exceeding the limit and require nations shipping to the EU to declare the production origin to avoid bypassing of the measures.

Exemptions and Global Partnerships

These European nations will not be subject to tariff quotas or tariffs because of their strong economic ties in the European Economic Area, the European Union has said.

In addition to these measures, the EU is pursuing a "steel partnership" with the US to ringfence their respective economies from overcapacity.

The European Union must take immediate action, and firmly, prior to all lights go out in significant portions of the EU steel industry and its supply networks.