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EU officials declared they will adopt the United States' import duties on steel, effectively doubling levies on imports to 50% in a decision condemned as "a critical danger" to the sector in Britain.

Unprecedented Crisis for UK Steel Exports

With eighty percent of British exports going to the European Union, this policy shift represents the UK steel industry's largest challenge, according to the industry association representing the sector.

New EU Measures and Rules

In its plan presented to the EU legislature this week, the EU executive additionally suggested reducing the current allowance for duty-free imports and requiring international producers to disclose where the steel was melted and poured to prevent China diverting exports through other countries.

EU steel sector faced potential collapse – these measures safeguard it so that it can invest, reduce emissions, and become competitive again.

Replacement of Current Framework

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

Sector Response and Warnings

Nevertheless, industry representatives, from the industry body British Steel, said EU increasing duties would pose "the most severe challenge the British steel sector has ever faced".

There were calls for the government to "recognise the urgent need to implement its own measures to defend" the British steel sector – which is affected by a 25% duty imposed by the US earlier this year – from the threat of vast quantities of global steel diverted away from American and EU markets.

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

Union and Political Pressure

Union leaders, assistant general secretary at labor union Community, stated the proposed changes represented "an existential threat" to British steel production.

Labor and business representatives called on the UK government to begin talks urgently with the European Union on country-specific tariff exemptions, pointing out that the United Kingdom was now the EU's No 1 export market.

Broader Context

Industry leaders in the EU have also been warning for months that the European steel sector confronts being "eliminated" through the increased duties on exports to the US along with high energy costs and cheap Chinese competition.

The steel industry on both sides of the Channel is described as a foundational industry, supplying elemental components in products ranging from skyscraper structures, wind turbines and railways to dishwashers and kitchenware.

Implementation and Future Actions

The new measures require approval by EU nations and the European parliament, with the European Commission president urging member states and European parliament members to move quickly in backing the proposal.

Should approval be granted, the EU will cut its current duty-free quota by 47% to 18.3m tonnes a year, a level last seen in 2013. It will apply a 50% tariff on foreign steel exceeding the limit and oblige nations exporting into the bloc to declare where the steel was melted and poured to prevent circumvention of the measures.

Exceptions and International Cooperation

These European nations will be exempt from import limits or duties due to their strong economic ties in the EEA, the European Union has confirmed.

In addition to these measures, the EU is seeking a "metals alliance" with the United States to protect their respective economies from excess production.

EU needs to act now, and firmly, before all lights go out in large parts of the European steel sector and its supply networks.