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The European Union has announced it will match President Donald Trump's tariffs on steel, causing the United Kingdom's steel industry to worry about its future.

The European Union is threatening Britain’s steel industry with tariffs of up to 50pc in a dispute that could derail Sir Keir Starmer’s attempts to reset relations with Brussels.

The proposal is meant as a “steppingstone” for a better deal with the United States, which also charges 50 percent on all steel.

Growing overcapacity, rising steel imports and tariffs from other countries were compounding challenges for the EU steel sector, officials said.

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