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EU officials revealed they will match the United States' steel tariffs, increasing to double taxes on imports to fifty percent in a decision condemned as "an existential threat" to the industry in Britain.

Major Challenge for British Steel Industry

With eighty percent of UK steel shipments destined for the European Union, this policy shift represents the UK steel industry's largest challenge, according to the lobby group speaking for the sector.

New EU Proposals and Rules

In its plan presented to the EU legislature on Tuesday, the European Commission additionally suggested slashing the current allowance for tariff-exempt steel and requiring foreign suppliers to state where the steel was melted and poured to stop China sneaking products in through third nations.

EU steel sector was on the verge of collapse – these measures safeguard it so that it can invest, decarbonise, and regain competitiveness.

Overhaul of Current Framework

These measures are intended to supersede a quota system that has been functioning for the last seven years and which is due to expire in 2026 and is now considered ineffective. To do nothing could have been "disastrous" for the sector, a European official stated.

Industry Reaction and Concerns

However, Gareth Stace, from the trade association British Steel, stated Brussels doubling its tariffs 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 implement its own measures to protect" the British steel sector – which is still reeling from a twenty-five percent duty from Trump earlier this year – from the threat of millions of tonnes of world steel redirected from US and European markets.

This surge in foreign steel "could be terminal for numerous steel companies.

Labor and Government Pressure

Alasdair McDiarmid, representative at steelworkers' union the industry union, said the new measures represented "an existential threat" to UK steel.

Labor and business representatives urged Keir Starmer to start negotiations immediately with the EU on nation-specific tariff exemptions, pointing out that the UK was now the European Union's No 1 trading partner.

Industry Background

Industry leaders in the EU have repeatedly cautioned for several months that their own industry faces being "wiped out" through the new 50% tariffs on American market shipments along with rising energy prices and low-cost Chinese imports.

The steel industry on both sides of the Channel is considered a essential sector, supplying elemental components in products ranging from skyscraper structures, wind turbines and railways to household appliances and kitchenware.

Implementation and Future Actions

These proposals require approval by member states and the EU legislature, with the EU executive head calling on member states and European parliament members to act fast in support of the proposal.

Should approval be granted, the European Union will reduce its current duty-free quota by 47% to 18.3m tonnes a year, a volume last seen in 2013. It will impose a 50% duty on imports beyond the quota and oblige nations exporting into the bloc to state where the steel was melted and poured to prevent circumvention of the measures.

Exemptions and Global Partnerships

Norway, Iceland, and Liechtenstein will be exempt from import limits or tariffs due to their strong economic ties in the EEA, the European Union has said.

Alongside the proposal, the EU is seeking a "metals alliance" with the United States to ringfence their national industries from excess production.

EU must take immediate action, and firmly, before operations cease in significant portions of the EU steel industry and its supply networks.