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EU officials declared they will adopt Donald Trump's steel tariffs, increasing to double taxes on imports to 50% in a action condemned as "a survival risk" to the industry in Britain.

Major Challenge for British Steel Exports

With 80% of UK steel shipments destined for the EU, this policy shift poses the UK steel industry's largest crisis, according to the lobby group representing the sector.

New EU Measures and Regulations

In its plan submitted to the European parliament on Tuesday, the EU executive additionally suggested slashing the current allowance for duty-free imports and obliging foreign suppliers to declare the origin of steel production to prevent Chinese producers sneaking products in through third nations.

The European steel industry faced potential collapse – we are protecting it so that it can invest, reduce emissions, and regain competitiveness.

Replacement of Existing System

The proposals are intended to supersede a quota system that has been functioning for the last seven years and which is due to expire in 2026 and is now seen as not fit for purpose. To do nothing could have been "disastrous" for the industry, a European official stated.

Sector Response and Concerns

Nevertheless, industry representatives, from the trade association UK Steel, stated Brussels doubling its tariffs would create "the biggest crisis the British steel sector has ever faced".

There were calls for the UK authorities to "acknowledge the urgent need to put in place its own measures to protect" the British steel sector – which is still reeling from a 25% tariff from Trump earlier this year – from the threat of vast quantities of global steel diverted away from American and EU markets.

This flood of imports "could be fatal for numerous steel companies.

Labor and Government Calls

Alasdair McDiarmid, representative at labor union Community, said the proposed changes posed "an existential threat" to British steel production.

Labor and business representatives urged the UK government to begin talks urgently with the European Union on nation-specific duty-free quotas, pointing out that the United Kingdom was now the European Union's primary trading partner.

Industry Background

Sector representatives in the EU have also been warning for months that the European steel sector faces being "eliminated" through the increased duties on American market shipments combined with rising energy prices and cheap Chinese competition.

Steel on in both the UK and EU is considered a foundational industry, supplying basic materials 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 EU legislature, with the EU executive head calling on national governments and European parliament members to act fast in support of the proposal.

If the plan is ratified, the EU will cut its current duty-free quota by forty-seven percent to 18.3 million tons a annually, a volume last seen in 2013. It will impose a fifty percent tariff on foreign steel beyond the quota and oblige nations shipping to the EU to state where the steel was melted and poured to prevent circumvention of the measures.

Exceptions and International Cooperation

These European nations will be exempt from import limits or tariffs due to their close trading relationship in the European Economic Area, the EU has confirmed.

In addition to these measures, the EU is seeking a "steel partnership" with the US to ringfence their respective economies from excess production.

The European Union must take immediate action, and decisively, before all lights go out in large parts of the EU steel industry and its supply networks.