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EU officials revealed they will match Donald Trump's import duties on steel, effectively doubling levies on imports to fifty percent in a action condemned as "a survival risk" to the sector in the UK.

Unprecedented Crisis for British Steel Exports

Given that eighty percent of British exports going to the EU, this change creates the British steel sector's biggest ever crisis, according to the lobby group representing the industry.

European Commission Measures and Rules

Through its proposal submitted to the European parliament this week, the EU executive additionally suggested cutting the current allowance for tariff-exempt steel and requiring foreign suppliers to disclose the origin of steel production to prevent China diverting exports through third nations.

The European steel industry faced potential collapse – these measures safeguard it so that investments can be made, reduce emissions, and become competitive again.

Replacement of Current Framework

The proposals are designed to replace a quota system that has been functioning for the last seven years and which is due to expire in 2026 and is now seen as ineffective. Inaction could have been "catastrophic" for the industry, one EU official stated.

Industry Reaction and Concerns

Nevertheless, Gareth Stace, from the trade association British Steel, stated EU increasing duties would pose "the biggest crisis the UK steel industry has ever faced".

He called on the UK authorities to "recognise the critical necessity to implement its own measures to protect" the British steel sector – which is affected by a twenty-five percent tariff imposed by Trump earlier this year – from the threat of vast quantities of global steel diverted away from American and EU markets.

This surge in foreign steel "could be fatal for many of our remaining steel companies.

Labor and Political Pressure

Union leaders, representative at labor union Community, said the proposed changes posed "a survival risk" to British steel production.

Labor and business representatives urged the UK government to begin talks immediately with the European Union on country-specific duty-free quotas, noting that the UK was now the EU's No 1 export market.

Broader Context

Industry leaders in the EU have also been warning for several months that the European steel sector faces being "wiped out" through the increased duties on exports to the US combined with rising energy prices and low-cost Chinese imports.

Steel on in both the UK and EU is considered a essential sector, providing elemental components in everything from skyscraper structures, renewable energy equipment and railways to household appliances and cutlery.

Implementation and Next Steps

These proposals must be agreed by member states and the EU legislature, with the European Commission president urging member states and European parliament members to move quickly in support of the proposal.

If the plan is ratified, the European Union will reduce its existing tariff-free allowance by 47% to 18.3 million tons a annually, a volume last seen in 2013. It will apply a 50% tariff on foreign steel exceeding the limit and oblige countries exporting into the EU to state the production origin to avoid bypassing of the sanctions.

Exceptions and International Cooperation

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

Alongside the proposal, the European Union is seeking a "metals alliance" with the US to protect their national industries from excess production.

The European Union needs to act now, and firmly, prior to operations cease in large parts of the European steel sector and its value chains.