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The European Union declared plans to mirror Donald Trump's import duties on steel, increasing to double taxes on foreign steel to fifty percent in a move described as "an existential threat" to the industry in Britain.

Unprecedented Crisis for British Steel Exports

With 80% of British exports going to the EU, this policy shift creates the British steel sector's biggest ever crisis, as stated by the industry association representing the sector.

European Commission Proposals and Rules

In its plan presented to the EU legislature on Tuesday, the EU executive additionally suggested reducing the existing quota for duty-free imports and requiring international producers to state the origin of steel production to stop Chinese producers sneaking products in through third nations.

The European steel industry faced potential collapse – we are protecting it so that investments can be made, decarbonise, and become competitive again.

Replacement of Current Framework

The proposals are designed to supersede a import framework that has been in operation for the last seven years and which is due to expire in 2026 and is now seen as outdated. Inaction could have been "fatal" for the industry, a European official stated.

Industry Reaction and Warnings

However, industry representatives, head of the trade association British Steel, stated Brussels increasing duties would pose "the most severe challenge the British steel sector has ever faced".

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 twenty-five percent tariff imposed by Trump earlier this year – from the threat of millions of tonnes of global steel redirected from US and European markets.

This flood of imports "might prove fatal for numerous steel companies.

Labor and Government Calls

Alasdair McDiarmid, assistant general secretary at labor union the industry union, stated the proposed changes posed "a survival risk" to British steel production.

Labor and business representatives urged the UK government to begin talks urgently with the EU on nation-specific duty-free quotas, noting that the UK was now the EU's primary export market.

Broader Context

Sector representatives in the European Union have repeatedly cautioned for several months that their own industry confronts being "wiped out" through the increased duties on exports to the US along with high energy costs and low-cost Chinese imports.

Steel on in both the UK and EU is considered a foundational industry, providing basic materials in products ranging from building frameworks, wind turbines and railways to dishwashers and cutlery.

Implementation and Future Actions

The new measures must be agreed by EU nations and the EU legislature, with the EU executive head calling on member states and MEPs to move quickly in support of the proposal.

If the plan is ratified, the European Union will reduce its current duty-free quota 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 oblige nations exporting into the bloc to declare where the steel was melted and poured to prevent circumvention of the measures.

Exemptions and International Cooperation

Norway, Iceland, and Liechtenstein will be exempt from import limits or duties because of their strong economic ties in the EEA, the EU has said.

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

The European Union must take immediate action, and firmly, before operations cease in significant portions of the European steel sector and its value chains.