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The European Union declared they will adopt Donald Trump's steel tariffs, effectively doubling taxes on imports to 50% in a move described as "a survival risk" to the sector in Britain.

Unprecedented Crisis for British Steel Exports

Given that eighty percent of British exports going to the EU, this change represents the British steel sector's biggest ever crisis, as stated by the lobby group speaking for the sector.

New EU Measures and Regulations

Through its proposal presented to the EU legislature this week, the EU executive also proposed reducing the existing quota for tariff-exempt steel and obliging international producers to state where the steel was melted and poured to stop China sneaking products in through third nations.

The European steel industry was on the verge of collapse – we are protecting it so that investments can be made, decarbonise, and become competitive again.

Replacement of Current Framework

The proposals are designed to replace a quota system that has been functioning for the past seven years and which is set to expire in 2026 and is now considered outdated. Inaction could have been "fatal" for the sector, a European official said.

Sector Response and Warnings

Nevertheless, industry representatives, head of the trade association UK Steel, said Brussels increasing duties would pose "the most severe challenge the UK steel industry has encountered".

There were calls for the UK authorities to "acknowledge the urgent need to put in place its own measures to protect" the UK steel industry – which is affected by a twenty-five percent duty from Trump earlier this year – from the risk of vast quantities 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.

Union and Government Pressure

Alasdair McDiarmid, assistant general secretary at labor union the industry union, said the new measures posed "a survival risk" to British steel production.

Labor and business representatives called on Keir Starmer to begin talks urgently with the European Union on nation-specific tariff exemptions, noting that the United Kingdom was now the European Union's primary export market.

Industry Background

Industry leaders in the EU have also been warning for months that the European steel sector confronts being "eliminated" through the increased duties on American market shipments along with high energy costs and low-cost Chinese imports.

The steel industry on in both the UK and EU is considered a foundational industry, providing basic materials in everything from building frameworks, renewable energy equipment and railways to dishwashers and cutlery.

Adoption and Next Steps

These proposals require approval by member states and the European parliament, with the European Commission president calling on member states and European parliament members to move quickly in backing the initiative.

If the plan is ratified, the European Union will reduce its existing tariff-free allowance by 47% to 18.3m tonnes a annually, a level last seen in 2013. It will impose a fifty percent tariff on foreign steel exceeding the limit and oblige countries shipping to the EU to state where the steel was melted and poured to prevent circumvention of the measures.

Exemptions and International Cooperation

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

Alongside the proposal, the EU is pursuing a "steel partnership" with the US to ringfence their respective economies from excess production.

The European Union must take immediate action, and firmly, prior to all lights go out in significant portions of the EU steel industry and its supply networks.