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EU officials have announced they will mirror Donald Trump's steel tariffs, effectively doubling levies on imports to 50% in a decision described as "a survival risk" to the industry in the UK.

Unprecedented Crisis for British Steel Exports

With 80% of British exports destined for the EU, this change poses the UK steel industry's largest crisis, according to the industry association representing the sector.

European Commission Measures and Rules

In its plan presented to the EU legislature this week, the EU executive additionally suggested cutting the current allowance for tariff-exempt steel and obliging foreign suppliers to state where the steel was melted and poured to prevent China sneaking products in through other countries.

EU steel sector was on the verge of collapse – we are protecting it so that investments can be made, reduce emissions, and become competitive again.

Overhaul of Current Framework

These measures are intended to supersede a import framework that has been functioning for the last seven years and which is set to expire in 2026 and is now considered not fit for purpose. Inaction could have been "disastrous" for the sector, a European official stated.

Industry Response and Warnings

Nevertheless, industry representatives, head of the trade association British Steel, stated EU doubling its tariffs would create "the most severe challenge the British steel sector has encountered".

There were calls for the government to "acknowledge the urgent need to put in place its own measures to protect" the UK steel industry – which is still reeling from a 25% tariff imposed by the US earlier this year – from the risk of millions of tonnes of global steel diverted away from American and EU markets.

This surge in foreign steel "might prove terminal for many of our remaining steel companies.

Union and Government Calls

Union leaders, assistant general secretary at steelworkers' union Community, said the new measures represented "a survival risk" to UK steel.

Labor and business representatives called on Keir Starmer to begin talks urgently with the European Union on nation-specific duty-free quotas, pointing out that the UK was now the EU's primary trading partner.

Broader Context

Industry leaders in the EU have also been warning for months that their own industry faces 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 considered a essential sector, supplying basic materials in products ranging from building frameworks, renewable energy equipment and transport infrastructure to household appliances and cutlery.

Adoption and Next Steps

These proposals must be agreed by member states and the EU legislature, with the European Commission president urging member states and MEPs to move quickly in support of the initiative.

If the plan is ratified, the EU will cut its existing tariff-free allowance by forty-seven percent to 18.3m tonnes a annually, a volume last seen in 2013. It will apply a 50% duty on imports exceeding the limit and oblige nations exporting into the bloc to state the production origin to avoid bypassing of the sanctions.

Exceptions and Global Partnerships

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 "metals alliance" with the US to protect their national industries from excess production.

EU must take immediate action, and firmly, prior to all lights go out in significant portions of the EU steel industry and its value chains.