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The European Union revealed plans to adopt Donald Trump's steel tariffs, increasing to double levies on imports to 50% in a action condemned as "a survival risk" to the sector in the UK.

Major Challenge for UK Steel Industry

With eighty percent of British exports destined for the EU, this policy shift creates the British steel sector's most severe crisis, according to the lobby group representing the sector.

European Commission Proposals and Regulations

In its plan submitted to the European parliament this week, the European Commission additionally suggested slashing the existing quota for tariff-exempt steel and obliging foreign suppliers to declare where the steel was melted and poured to prevent China sneaking products in through other countries.

The European steel industry was on the verge of collapse – these measures safeguard it so that investments can be made, reduce emissions, and become competitive again.

Overhaul of Current Framework

These measures are intended to supersede 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 not fit for purpose. To do nothing could have been "catastrophic" for the sector, a European official stated.

Sector Reaction and Concerns

However, Gareth Stace, from the trade association British Steel, said EU increasing duties would create "the most severe challenge the UK steel industry has encountered".

He called on the UK authorities to "acknowledge the urgent need to implement domestic protections to defend" the UK steel industry – which is still reeling from a twenty-five percent tariff imposed by the US recently – from the threat of millions of tonnes of global steel diverted away from US and European markets.

This surge in foreign steel "could be fatal for numerous steel companies.

Union and Government Calls

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

Unions and industry leaders urged the UK government to begin talks immediately with the EU on country-specific duty-free quotas, noting that the United Kingdom was now the European Union's primary export market.

Industry Background

Sector representatives in the European Union have also been warning for several months that the European steel sector confronts being "wiped out" through the increased duties on American market shipments along with high energy costs and cheap Chinese competition.

The steel industry on both sides of the Channel is considered a foundational industry, providing basic materials in everything from building frameworks, renewable energy equipment and railways to dishwashers and cutlery.

Implementation and Next Steps

The new measures require approval by EU nations and the EU legislature, with the EU executive head calling on national governments and MEPs to move quickly in backing the initiative.

If the plan is ratified, the EU will reduce its current duty-free quota by 47% to 18.3 million tons a annually, a level previously recorded in 2013. It will impose a fifty percent duty on imports exceeding the limit and oblige nations shipping to the EU to declare the production origin to avoid bypassing of the measures.

Exemptions and International Cooperation

Norway, Iceland, and Liechtenstein will not be subject to tariff quotas or duties due to their close trading relationship in the European Economic Area, the EU has said.

Alongside the proposal, the EU is seeking a "steel partnership" with the United States to protect their respective economies from overcapacity.

The European Union needs to act now, and firmly, before operations cease in large parts of the EU steel industry and its value chains.