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The European Union have announced plans to match Donald Trump's steel tariffs, increasing to double taxes on imports to 50% in a move described as "a survival risk" to the industry in Britain.

Unprecedented Crisis for British Steel Exports

Given that 80% of British exports destined for the EU, this change represents the UK steel industry's most severe challenge, according to the industry association speaking for the sector.

European Commission Measures and Rules

In its plan submitted to the EU legislature on Tuesday, the European Commission additionally suggested cutting the current allowance for duty-free imports and obliging foreign suppliers to declare the origin of steel production to stop Chinese producers sneaking products in through third nations.

EU steel sector faced potential collapse – we are protecting it so that investments can be made, reduce emissions, and regain competitiveness.

Replacement of Current Framework

The proposals are intended to supersede a import framework that has been functioning for the past seven years and which is set to expire in 2026 and is now seen as outdated. To do nothing could have been "fatal" for the industry, one EU official stated.

Industry Reaction and Warnings

Nevertheless, Gareth Stace, head of the trade association UK Steel, said EU doubling its tariffs would create "the most severe challenge the UK steel industry has ever faced".

There were calls for the government to "acknowledge the urgent need to implement domestic protections to defend" the UK steel industry – which is affected by a 25% duty from the US earlier this year – from the threat of vast quantities of global steel diverted away from American and EU markets.

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

Union and Political Calls

Union leaders, representative at steelworkers' union Community, said the new measures posed "a survival risk" to British steel production.

Labor and business representatives called on Keir Starmer to start negotiations urgently with the EU on nation-specific tariff exemptions, noting that the UK was now the EU's No 1 trading partner.

Broader Context

Industry leaders in the European Union have repeatedly cautioned for several months that their own industry confronts being "eliminated" through the new 50% tariffs on exports to the US combined with high energy costs and low-cost Chinese imports.

Steel on both sides of the Channel is described as a foundational industry, providing elemental components in everything from skyscraper structures, wind turbines and transport infrastructure to household appliances and kitchenware.

Implementation and Next Steps

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

If the plan is ratified, the European Union will cut its existing tariff-free allowance by forty-seven percent to 18.3m tonnes a year, a level last seen in 2013. It will impose a 50% duty on imports beyond the quota and oblige countries exporting into the bloc to state where the steel was melted and poured to prevent circumvention of the measures.

Exceptions and Global Partnerships

These European nations will not be subject to import limits or tariffs because of their strong economic ties in the European Economic Area, the EU has confirmed.

Alongside the proposal, the European Union is pursuing a "steel partnership" with the US to ringfence their respective economies from excess production.

The European Union must take immediate action, and firmly, prior to all lights go out in large parts of the European steel sector and its value chains.