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The European Union have announced they will adopt Donald Trump's import duties on steel, increasing to double taxes on imports to fifty percent in a move described as "an existential threat" to the industry in Britain.

Unprecedented Crisis for British Steel Industry

With 80% of UK steel shipments going to the EU, this policy shift creates the UK steel industry's most severe challenge, according to the lobby group speaking for the industry.

New EU Proposals and Rules

In its plan submitted to the EU legislature this week, the European Commission also proposed reducing the existing quota for tariff-exempt steel and obliging foreign suppliers to state the origin of steel production to stop China sneaking products in through other countries.

The European steel industry stood at the brink of failure – we are protecting it so that investments can be made, reduce emissions, and regain competitiveness.

Overhaul of Existing System

The proposals are designed to replace a import framework that has been functioning for the last seven years and which is set to expire in 2026 and is now considered ineffective. To do nothing could have been "catastrophic" for the sector, a European official stated.

Sector Reaction and Concerns

However, Gareth Stace, head of the trade association British Steel, said EU doubling its tariffs would create "the biggest crisis the UK steel industry has ever faced".

There were calls for the government to "acknowledge the urgent need to implement its own measures to defend" the British steel sector – which is affected by a twenty-five percent tariff from the US earlier this year – from the threat of millions of tonnes of world steel redirected from US and European markets.

This flood of imports "might prove terminal for many of our remaining steel companies.

Labor and Political Calls

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

Unions and industry leaders called on Keir Starmer to begin talks immediately with the EU on country-specific tariff exemptions, pointing out that the United Kingdom was now the European Union's primary trading partner.

Industry Background

Sector representatives in the European Union have repeatedly cautioned for several months that the European steel sector faces being "eliminated" through the new 50% tariffs on American market shipments along with high energy costs and cheap Chinese competition.

The steel industry on in both the UK and EU is considered a essential sector, providing basic materials in everything from skyscraper structures, renewable energy equipment and transport infrastructure to dishwashers and kitchenware.

Adoption and Next Steps

These proposals require approval by EU nations and the European parliament, with the European Commission president calling on national governments and European parliament members to act fast in support of the proposal.

If the plan is ratified, the European Union will cut its current duty-free quota by 47% to 18.3 million tons a annually, a level last seen in 2013. It will apply a fifty percent duty on foreign steel exceeding the limit and oblige countries shipping to the bloc to declare where the steel was melted and poured to avoid bypassing of the sanctions.

Exceptions and Global Partnerships

Norway, Iceland, and Liechtenstein will be exempt from import limits or tariffs because of their strong economic ties in the European Economic Area, the EU has confirmed.

Alongside the proposal, the European Union is pursuing a "metals alliance" with the United States to ringfence their national industries from excess production.

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