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EU officials declared they will match Donald Trump's steel tariffs, increasing to double taxes on foreign steel to fifty percent in a decision described as "a critical danger" to the industry in Britain.

Unprecedented Crisis for British Steel Exports

Given that eighty percent of British exports going to the EU, this change poses the British steel sector's biggest ever crisis, according to the industry association speaking for the industry.

New EU Measures and Rules

In its plan submitted to the European parliament on Tuesday, the European Commission additionally suggested cutting the current allowance for duty-free imports and requiring foreign suppliers to declare 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, reduce emissions, and become competitive again.

Overhaul of Existing System

The proposals are intended to replace a import framework that has been in operation for the past seven years and which is due to expire in 2026 and is now considered outdated. Inaction could have been "fatal" for the sector, a European official stated.

Industry Reaction and Concerns

Nevertheless, industry representatives, from the trade association British Steel, said Brussels doubling its tariffs would pose "the biggest crisis the British steel sector has ever faced".

He called on the government to "acknowledge the urgent need to put in place its own measures to defend" the British steel sector – which is affected by a twenty-five percent tariff from the US earlier this year – from the threat of millions of tonnes of global steel redirected from US and European markets.

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

Labor and Political Calls

Alasdair McDiarmid, assistant general secretary at steelworkers' union Community, stated the proposed changes posed "an existential threat" to UK steel.

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

Industry Background

Sector representatives in the EU have also been warning for several months that their own industry faces being "eliminated" through the new 50% tariffs on American market shipments combined with high energy costs and low-cost Chinese imports.

The steel industry on both sides of the Channel is considered a foundational industry, providing basic materials in products ranging from building frameworks, renewable energy equipment and transport infrastructure to dishwashers and cutlery.

Implementation and Future Actions

The new measures must be agreed by EU nations and the EU legislature, with the European Commission president urging national governments and MEPs to move quickly in backing the initiative.

Should approval be granted, the European Union will reduce its existing tariff-free allowance by 47% to 18.3m tonnes a year, a level previously recorded in 2013. It will impose a fifty percent tariff on foreign steel beyond the quota and oblige countries shipping to the EU to state the production origin to avoid bypassing of the measures.

Exceptions and Global Partnerships

These European nations will be exempt from tariff quotas or duties due to their strong economic ties in the European Economic Area, the European Union has said.

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

EU must take immediate action, and decisively, before operations cease in large parts of the EU steel industry and its value chains.