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EU officials declared they will match Donald Trump's steel tariffs, increasing to double taxes on foreign steel to 50% in a action condemned as "a survival risk" to the sector in Britain.

Major Challenge for UK Steel Industry

Given that 80% of British exports going to the European Union, this policy shift poses the UK steel industry's most severe challenge, according to the industry association speaking for the industry.

European Commission Measures and Regulations

Through its proposal presented to the European parliament on Tuesday, the European Commission also proposed reducing the existing quota for duty-free imports and requiring international producers to declare the origin of steel production to prevent Chinese producers diverting exports through other countries.

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

Overhaul of Current Framework

These measures are designed to replace 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 ineffective. Inaction could have been "fatal" for the sector, one EU official stated.

Sector Response and Warnings

However, industry representatives, head of the trade association British Steel, stated Brussels increasing duties would pose "the most severe challenge the UK steel industry has encountered".

There were calls for the UK authorities to "recognise the urgent need to put in place domestic protections to defend" the British steel sector – which is still reeling from a 25% duty from the US recently – from the risk of vast quantities of world steel redirected from American and EU markets.

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

Labor and Political Pressure

Alasdair McDiarmid, representative at steelworkers' union Community, said the new measures posed "a survival risk" to UK steel.

Unions and industry leaders urged Keir Starmer to begin talks urgently with the European Union on country-specific tariff exemptions, pointing out that the United Kingdom was now the European Union's primary trading partner.

Broader Context

Sector representatives in the European Union have also been warning for months that the European steel sector confronts being "wiped out" through the increased duties on exports to the US combined with rising energy prices and low-cost Chinese imports.

The steel industry on both sides of the Channel is described as a foundational industry, supplying elemental components in everything from skyscraper structures, renewable energy equipment and railways to household appliances and cutlery.

Adoption and Future Actions

These proposals must be agreed by EU nations and the European parliament, with the European Commission president urging national governments and European parliament members to move quickly in support of 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 50% tariff on foreign steel exceeding the limit and require nations shipping to the EU to declare the production origin to avoid bypassing of the measures.

Exemptions and Global Partnerships

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

Alongside the proposal, the EU is pursuing a "steel partnership" with the United States to ringfence their respective economies from excess production.

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