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The European Union have announced they will adopt Donald Trump's steel tariffs, effectively doubling levies on imports to fifty percent in a decision condemned as "a critical danger" to the industry in Britain.

Major Challenge for British Steel Exports

With eighty percent of British exports going to the European Union, this policy shift represents the British steel sector's biggest ever challenge, according to the lobby group speaking for the sector.

European Commission Proposals and Regulations

In its plan submitted to the European parliament this week, the European Commission additionally suggested cutting the existing quota for tariff-exempt steel and requiring international producers to state where the steel was melted and poured to prevent China diverting exports 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 Current Framework

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

Sector Response and Concerns

However, industry representatives, head of the industry body UK Steel, stated Brussels increasing duties would create "the biggest crisis the British steel sector has ever faced".

He called on the UK authorities to "acknowledge the critical necessity to implement domestic protections to protect" the UK steel industry – which is still reeling from a twenty-five percent duty 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 "might prove terminal for numerous steel companies.

Union and Political Pressure

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

Labor and business representatives urged Keir Starmer to begin talks urgently with the EU on country-specific duty-free quotas, noting that the United Kingdom was now the EU's primary trading partner.

Broader Context

Industry leaders in the European Union have also been warning for several months that their own industry faces being "wiped out" through the increased duties on American market shipments combined with high energy costs and low-cost Chinese imports.

Steel on in both the UK and EU is considered a foundational industry, providing elemental components in everything from skyscraper structures, renewable energy equipment and railways to household appliances and cutlery.

Implementation and Future Actions

The new measures must be agreed by member states and the EU legislature, with the EU executive head calling on national governments and European parliament members to act fast in backing the proposal.

Should approval be granted, the EU will reduce its existing tariff-free allowance by 47% to 18.3m tonnes a year, a volume last seen in 2013. It will apply a fifty percent tariff on imports exceeding the limit and oblige nations exporting into the EU to declare the production origin to prevent circumvention of the sanctions.

Exemptions and International Cooperation

Norway, Iceland, and Liechtenstein will be exempt from import limits or tariffs because of their close trading relationship in the European Economic Area, the EU has said.

Alongside the proposal, the EU is pursuing a "metals alliance" with the United States to protect 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 value chains.