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EU officials have announced plans to match the United States' steel tariffs, effectively doubling taxes on imports to fifty percent in a action condemned as "a survival risk" to the industry in Britain.

Unprecedented Crisis for UK Steel Industry

With 80% of UK steel shipments going to the European Union, this change represents the UK steel industry's largest challenge, according to the lobby group representing the industry.

New EU Proposals and Rules

In its plan presented to the European parliament on Tuesday, the EU executive additionally suggested reducing the current allowance for tariff-exempt steel and requiring international producers to declare the origin of steel production to prevent China diverting exports through third nations.

EU steel sector was on the verge of collapse – these measures safeguard it so that investments can be made, reduce emissions, and regain competitiveness.

Overhaul of Existing System

The proposals are intended to supersede a quota system that has been functioning for the past seven years and which is due to expire in 2026 and is now considered ineffective. To do nothing could have been "disastrous" for the sector, one EU official stated.

Sector Reaction and Warnings

However, Gareth Stace, from the industry body UK Steel, stated EU increasing duties would create "the biggest crisis the UK steel industry has encountered".

He called on the UK authorities to "recognise the urgent need to implement its own measures to defend" the British steel sector – which is affected by a 25% tariff from the US recently – from the risk of millions of tonnes of global steel diverted away from American and EU markets.

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

Union and Political Pressure

Union leaders, representative at labor union the industry union, said the proposed changes represented "an existential threat" to UK steel.

Labor and business representatives urged the UK government to start negotiations urgently with the European Union on country-specific duty-free quotas, pointing out that the United Kingdom was now the European Union's primary export market.

Broader Context

Industry leaders in the EU have also been warning for several months that their own industry confronts being "eliminated" through the increased duties on American market shipments combined with rising energy prices and cheap Chinese competition.

Steel on in both the UK and EU is considered a essential sector, supplying elemental components in products ranging from building frameworks, wind turbines and railways to dishwashers and cutlery.

Adoption and Future Actions

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

If the plan is ratified, the EU will cut its existing tariff-free allowance by 47% to 18.3m tonnes a year, a volume last seen in 2013. It will impose a 50% duty on imports exceeding the limit and oblige nations shipping to the EU to declare where the steel was melted and poured to avoid bypassing of the sanctions.

Exemptions and International Cooperation

These European nations will be exempt from tariff quotas or tariffs because of their close trading relationship in the European Economic Area, the European Union has said.

In addition to these measures, the European Union is seeking a "metals alliance" with the United States to protect their national industries from excess production.

The European Union must take immediate action, and firmly, prior to operations cease in significant portions of the European steel sector and its supply networks.