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The European Union revealed plans to adopt Donald Trump's steel tariffs, effectively doubling levies on foreign steel to fifty percent in a decision described as "a survival risk" to the industry in Britain.

Major Challenge for UK Steel Industry

Given that 80% of British exports going to the EU, this policy shift creates the UK steel industry's largest crisis, according to the lobby group representing the sector.

New EU Proposals and Rules

In its plan presented to the EU legislature on Tuesday, the European Commission also proposed cutting the existing quota for duty-free imports and requiring foreign suppliers to state the origin of steel production to prevent China diverting exports through other countries.

The European steel industry stood at the brink of failure – these measures safeguard it so that it can invest, decarbonise, and become competitive again.

Overhaul of Existing System

These measures are designed to supersede a quota system that has been in operation for the past seven years and which is set to expire in 2026 and is now considered outdated. To do nothing could have been "disastrous" for the industry, one EU official stated.

Industry Reaction and Concerns

Nevertheless, industry representatives, head of the industry body British Steel, stated Brussels doubling its tariffs would create "the most severe challenge the UK steel industry has encountered".

There were calls for the UK authorities to "recognise the critical necessity to implement domestic protections to defend" the British steel sector – which is still reeling from a 25% duty from the US recently – from the risk of millions of tonnes of world steel diverted away from American and EU markets.

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

Union and Political Calls

Alasdair McDiarmid, assistant general secretary at labor union Community, stated the proposed changes represented "a survival risk" to UK steel.

Labor and business representatives urged Keir Starmer to begin talks urgently with the EU on country-specific duty-free quotas, pointing out that the UK was now the EU's No 1 trading partner.

Industry Background

Sector representatives in the EU have repeatedly cautioned for months that their own industry faces being "eliminated" through the increased duties on exports to the US combined with high energy costs and low-cost Chinese imports.

The steel industry on both sides of the Channel is described as a foundational industry, supplying elemental components in everything from skyscraper structures, wind turbines and railways to dishwashers and cutlery.

Implementation and Next Steps

The new measures require approval by member states and the European parliament, with the European Commission president urging national governments and MEPs to move quickly in support of the initiative.

Should approval be granted, the European Union will cut its existing tariff-free allowance by 47% to 18.3 million tons a annually, a level last seen in 2013. It will apply a fifty percent duty on imports exceeding the limit and oblige countries shipping to the bloc to declare the production origin to prevent circumvention of the sanctions.

Exceptions and International Cooperation

Norway, Iceland, and Liechtenstein will not be subject to tariff quotas or duties due to their strong economic ties in the EEA, the EU has confirmed.

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

EU needs to act now, and firmly, before all lights go out in significant portions of the EU steel industry and its value chains.