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EU officials declared plans to adopt the United States' steel tariffs, increasing to double levies on foreign steel to fifty percent in a action condemned as "a critical danger" to the sector in the UK.

Major Challenge for British Steel Industry

Given that 80% of UK steel shipments destined for the EU, this policy shift represents the UK steel industry's most severe crisis, as stated by the industry association representing the sector.

New EU Proposals and Regulations

Through its proposal submitted to the European parliament on Tuesday, the European Commission additionally suggested reducing the current allowance for tariff-exempt steel and requiring international producers to declare where the steel was melted and poured to prevent Chinese producers sneaking products in through other countries.

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

Overhaul of Existing System

These measures are designed to replace a quota system that has been functioning for the past seven years and which is set to expire in 2026 and is now seen as not fit for purpose. To do nothing could have been "disastrous" for the sector, a European official said.

Sector Response and Concerns

Nevertheless, Gareth Stace, head of the industry body British Steel, stated Brussels increasing duties would pose "the biggest crisis the British steel sector has encountered".

He called on the UK authorities to "acknowledge the critical necessity to put in place domestic protections to defend" the UK steel industry – which is affected by a twenty-five percent duty imposed by the US earlier this year – from the risk of millions of tonnes of world steel redirected from US and European markets.

This flood of imports "could be fatal for numerous steel companies.

Labor and Government Calls

Alasdair McDiarmid, representative at labor union the industry union, stated the proposed changes posed "an existential threat" to UK steel.

Unions and industry leaders called on the UK government to start negotiations immediately with the EU on nation-specific duty-free quotas, noting that the UK was now the European Union's No 1 export market.

Broader Context

Sector representatives in the European Union have also been warning for several months that their own industry faces being "eliminated" through the increased duties on exports to the US combined with high energy costs and low-cost Chinese imports.

Steel on both sides of the Channel is considered a essential sector, supplying basic materials in everything from skyscraper structures, wind turbines and railways to household appliances and cutlery.

Implementation and Future Actions

These proposals require approval by member states and the EU legislature, with the European Commission president calling on member states and MEPs to move quickly in backing the proposal.

Should approval be granted, the European Union will cut its current duty-free quota by forty-seven percent to 18.3m tonnes a year, a level last seen in 2013. It will impose a 50% duty on imports exceeding the limit and require countries exporting into the EU to declare the production origin to prevent circumvention of the measures.

Exceptions and Global Partnerships

These European nations will be exempt from tariff quotas or duties because of their strong economic ties in the EEA, the EU has confirmed.

In addition to these measures, the EU is pursuing a "metals alliance" with the US to ringfence their national industries from excess production.

The European Union must take immediate action, and decisively, prior to all lights go out in significant portions of the EU steel industry and its supply networks.