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The European Union have announced they will adopt Donald Trump's steel tariffs, effectively doubling taxes on foreign steel to 50% in a move described as "an existential threat" to the sector in Britain.

Major Challenge for British Steel Industry

With 80% of British exports destined for the EU, this change poses the UK steel industry's biggest ever challenge, as stated by the industry association speaking for the industry.

New EU Measures and Rules

In its plan presented to the European parliament this week, the EU executive also proposed slashing the current allowance for duty-free imports and obliging international producers to declare the origin of steel production 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 it can invest, reduce emissions, and become competitive again.

Overhaul of Current Framework

These measures are designed to replace a quota system that has been in operation for the last 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 industry, a European official stated.

Sector Reaction and Warnings

However, industry representatives, head of the industry body British Steel, said Brussels increasing duties would create "the biggest crisis the British steel sector has encountered".

There were calls for the UK authorities to "recognise the critical necessity to put in place domestic protections to defend" the British steel sector – which is still reeling from a 25% tariff from Trump 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 many of our remaining steel companies.

Labor and Government Pressure

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

Unions and industry leaders called on the UK government to start negotiations urgently with the EU on nation-specific tariff exemptions, noting that the UK was now the European Union's No 1 trading partner.

Industry Background

Sector representatives in the European Union have also been warning for several months that their own industry confronts being "wiped out" through the increased duties on American market shipments combined with rising energy prices and low-cost Chinese imports.

Steel on in both the UK and EU is considered a foundational industry, supplying elemental components in products ranging from building frameworks, renewable energy equipment and railways to dishwashers and kitchenware.

Implementation and Next Steps

These proposals require approval by EU nations and the EU legislature, with the EU executive head calling on member states and European parliament members to act fast in support of the proposal.

If the plan is ratified, the European Union will reduce its current duty-free quota by forty-seven percent to 18.3 million tons a annually, a volume previously recorded in 2013. It will apply a 50% duty on foreign steel beyond the quota and oblige nations shipping to the EU to state the production origin to avoid bypassing of the measures.

Exceptions and Global Partnerships

These European nations will not be subject to import limits or duties because of their close trading relationship in the EEA, the EU has confirmed.

In addition to these measures, the European Union is seeking a "steel partnership" with the US to ringfence their respective economies from overcapacity.

The European Union must take immediate action, and decisively, before operations cease in large parts of the EU steel industry and its supply networks.