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EU officials revealed plans to mirror the United States' steel tariffs, effectively doubling taxes on imports to fifty percent in a action condemned as "an existential threat" to the industry in Britain.

Major Challenge for British Steel Exports

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

New EU Proposals and Regulations

In its plan presented to the European parliament on Tuesday, the European Commission also proposed cutting the current allowance for tariff-exempt steel and requiring 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 investments can be made, reduce emissions, and become competitive again.

Overhaul of Current Framework

The proposals are intended to replace 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 not fit for purpose. To do nothing could have been "disastrous" for the sector, one EU official said.

Sector Reaction and Warnings

However, Gareth Stace, head of the industry body UK Steel, said EU doubling its tariffs would pose "the most severe challenge the British steel sector has encountered".

He called on the UK authorities to "acknowledge the critical necessity to put in place domestic protections to defend" the UK steel industry – which is still reeling from a twenty-five percent tariff imposed by Trump earlier this year – from the risk of millions of tonnes of world steel redirected from US and European markets.

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

Union and Political Calls

Union leaders, representative at steelworkers' union the industry union, stated the proposed changes represented "an existential threat" to UK steel.

Labor and business representatives called on Keir Starmer to begin talks immediately with the EU on country-specific tariff exemptions, noting that the UK was now the European Union's primary export market.

Broader Context

Industry leaders in the European Union have also been warning for months that the European steel sector confronts being "wiped out" through the increased duties on exports to the US combined with rising energy prices and cheap Chinese competition.

The steel industry on in both the UK and EU is described as a essential sector, supplying basic materials in everything from skyscraper structures, wind turbines and railways to dishwashers and kitchenware.

Implementation and Next Steps

The new measures require approval by EU nations and the European parliament, with the European Commission president urging member states and MEPs to move quickly in support of the proposal.

If the plan is ratified, the EU will cut its existing tariff-free allowance by forty-seven percent to 18.3 million tons a year, a volume previously recorded in 2013. It will impose a 50% duty on foreign steel beyond the quota and oblige countries exporting into the bloc to state where the steel was melted and poured to avoid bypassing of the measures.

Exceptions and Global Partnerships

These European nations will not be subject to import limits or tariffs because of their close trading relationship in the EEA, the EU has said.

In addition to these measures, the EU is pursuing a "metals alliance" with the US to ringfence their respective economies from excess production.

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