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EU officials declared they will match Donald Trump's steel tariffs, increasing to double levies on imports to 50% in a action condemned as "a critical danger" to the industry in the UK.

Unprecedented Crisis for UK Steel Exports

Given that eighty percent of British exports destined for the European Union, this change represents the UK steel industry's biggest ever crisis, according to the lobby group representing the sector.

European Commission Proposals and Rules

Through its proposal presented to the European parliament this week, the European Commission also proposed reducing the existing quota for duty-free imports and obliging foreign suppliers to declare where the steel was melted and poured to stop China diverting exports through other countries.

EU steel sector 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

These measures are designed to supersede a import framework that has been in operation for the past seven years and which is set to expire in 2026 and is now seen as ineffective. Inaction could have been "catastrophic" for the industry, one EU official said.

Industry Reaction and Concerns

Nevertheless, Gareth Stace, head of the industry body UK Steel, stated Brussels increasing duties would pose "the most severe challenge the UK steel industry has ever faced".

He called on the government to "acknowledge the urgent need to implement domestic protections to protect" the British steel sector – which is still reeling from a twenty-five percent tariff from Trump recently – from the risk of vast quantities of world steel diverted away from American and EU markets.

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

Union and Political Pressure

Union leaders, assistant general secretary at steelworkers' union Community, stated the new measures represented "an existential threat" to British steel production.

Unions and industry leaders called on Keir Starmer to begin talks immediately with the EU on country-specific duty-free quotas, noting that the UK was now the EU's primary export market.

Industry Background

Industry leaders in the European Union have also been warning for several months that their own industry faces being "eliminated" 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 considered a foundational industry, providing elemental components in everything from skyscraper structures, renewable energy equipment and railways to dishwashers and kitchenware.

Implementation and Next Steps

These proposals must be agreed by member states and the European parliament, with the EU executive head calling on member states and European parliament members to move quickly in backing the proposal.

Should approval be granted, the European Union will cut its current duty-free quota by forty-seven percent to 18.3 million tons a year, a level last seen in 2013. It will apply a fifty percent tariff on foreign steel exceeding the limit and require nations shipping to the bloc to declare where the steel was melted and poured to avoid bypassing of the sanctions.

Exceptions and International Cooperation

Norway, Iceland, and Liechtenstein will not be subject to tariff quotas or tariffs due to their close trading relationship in the EEA, the EU has confirmed.

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

The European Union must take immediate action, and decisively, before all lights go out in large parts of the European steel sector and its supply networks.