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EU officials declared they will adopt Donald Trump's steel tariffs, effectively doubling levies on imports to fifty percent in a action described as "a survival risk" to the sector in the UK.

Major Challenge for British Steel Exports

With eighty percent of British exports destined for the EU, this change represents the UK steel industry's largest crisis, according to the lobby group representing the sector.

European Commission Proposals and Regulations

Through its proposal presented to the EU legislature this week, the EU executive additionally suggested reducing the current allowance for duty-free imports and obliging international producers to disclose the origin of steel production to stop China sneaking products in through third nations.

EU steel sector was on the verge of collapse – these measures safeguard it so that investments can be made, reduce emissions, and regain competitiveness.

Replacement of Existing System

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 ineffective. Inaction could have been "fatal" for the industry, a European official said.

Industry Reaction and Warnings

However, industry representatives, from the industry body UK Steel, said Brussels doubling its tariffs would pose "the biggest crisis the UK steel industry has ever faced".

He called on the government to "acknowledge the critical necessity to put in place domestic protections to protect" the UK steel industry – which is still reeling from a twenty-five percent duty from Trump earlier this year – from the risk of millions of tonnes of global steel diverted away from US and European markets.

This surge in foreign steel "might prove fatal for numerous steel companies.

Union and Political Pressure

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

Unions and industry leaders called on Keir Starmer to begin talks urgently with the European Union on nation-specific duty-free quotas, noting that the United Kingdom was now the European Union's primary trading partner.

Broader Context

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 rising energy prices and low-cost Chinese imports.

The steel industry on in both the UK and EU is considered a foundational industry, providing basic materials in products ranging from skyscraper structures, renewable energy equipment and transport infrastructure to household appliances and kitchenware.

Adoption and Future Actions

The new measures require approval by member states and the EU legislature, with the European Commission president urging member states and MEPs to act fast in support of the initiative.

If the plan is ratified, the European Union will cut its existing tariff-free allowance by 47% to 18.3 million tons a annually, a level previously recorded in 2013. It will apply a fifty percent tariff on imports exceeding the limit and require nations exporting into the bloc to declare the production origin to prevent circumvention of the measures.

Exemptions and Global Partnerships

These European nations will not be subject to tariff quotas or duties due to their close trading relationship in the European Economic Area, the EU has confirmed.

Alongside the proposal, the EU is pursuing a "metals alliance" with the United States to protect their respective economies from excess production.

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