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EU officials declared plans to adopt the United States' import duties on steel, effectively doubling levies on imports to fifty percent in a action described as "an existential threat" to the industry in Britain.

Unprecedented Crisis for British Steel Exports

With 80% of UK steel shipments destined for the European Union, this change poses the British steel sector's largest challenge, according to the industry association representing the industry.

European Commission Proposals and Rules

In its plan presented to the EU legislature this week, the EU executive also proposed reducing the existing quota for duty-free imports and requiring international producers to disclose the origin of steel production to prevent Chinese producers diverting exports 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 Existing System

The proposals are intended to replace a import framework that has been in operation for the last seven years and which is set to expire in 2026 and is now considered ineffective. Inaction could have been "catastrophic" for the industry, a European official said.

Industry Response and Warnings

However, Gareth Stace, from the trade association UK Steel, said Brussels increasing duties would pose "the biggest crisis the British steel sector has ever faced".

There were calls for the UK authorities to "acknowledge the urgent need to implement domestic protections to protect" the British steel sector – which is still reeling from a twenty-five percent tariff from the US recently – from the threat of millions of tonnes of global steel diverted away from American and EU markets.

This flood of imports "could be fatal for many of our remaining steel companies.

Union and Political Pressure

Alasdair McDiarmid, assistant general secretary at steelworkers' union the industry union, stated the new measures represented "a survival risk" to UK steel.

Labor and business representatives urged Keir Starmer to start negotiations immediately with the European Union on nation-specific duty-free quotas, noting that the UK was now the EU's No 1 export market.

Industry Background

Sector representatives in the European Union have repeatedly cautioned for months that the European steel sector faces being "eliminated" through the increased duties on exports to the US along with rising energy prices and low-cost Chinese imports.

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

Implementation and Future Actions

These proposals require approval by EU nations and the EU legislature, with the European Commission president urging national governments and MEPs to move quickly in backing the proposal.

Should approval be granted, the European Union will cut its existing tariff-free allowance by forty-seven percent to 18.3 million tons a annually, a level last seen in 2013. It will apply a 50% tariff on imports exceeding the limit and oblige countries exporting into the bloc to state the production origin to avoid bypassing of the sanctions.

Exceptions and Global Partnerships

Norway, Iceland, and Liechtenstein will be exempt from tariff quotas or tariffs due to their strong economic ties in the European Economic Area, the European Union has confirmed.

Alongside the proposal, the EU is seeking a "steel partnership" with the US to protect their national industries from overcapacity.

The European Union needs to act now, and decisively, before operations cease in large parts of the European steel sector and its supply networks.