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EU officials have announced plans to adopt Donald Trump's steel tariffs, effectively doubling levies on foreign steel to fifty percent in a move described as "a survival risk" to the sector in the UK.

Unprecedented Crisis for British Steel Exports

With eighty percent of UK steel shipments destined for the EU, this change creates the British steel sector's largest challenge, as stated by the industry association speaking for the industry.

New EU Measures and Rules

Through its proposal submitted to the European parliament this week, the European Commission additionally suggested reducing the current allowance for tariff-exempt steel and requiring international producers to disclose the origin of steel production to prevent China sneaking products in through third nations.

The European steel industry was on the verge of collapse – we are protecting it so that it can invest, decarbonise, 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a quota system that has been functioning for the last seven years and which is set to expire in 2026 and is now seen as outdated. To do nothing could have been "disastrous" for the sector, a European official stated.

Sector Reaction and Warnings

Nevertheless, Gareth Stace, from the trade association UK Steel, said Brussels increasing duties would create "the biggest crisis the British steel sector has ever faced".

There were calls for the government to "recognise the urgent need to implement domestic protections to defend" the British steel sector – which is affected by a 25% tariff imposed by Trump earlier this year – from the risk of millions of tonnes of world steel diverted away from American and EU markets.

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

Union and Political Pressure

Union leaders, assistant general secretary at labor union the industry union, said the new measures represented "an existential threat" to British steel production.

Unions and industry leaders called on Keir Starmer to start negotiations immediately with the European Union on country-specific tariff exemptions, noting that the UK was now the EU's primary trading partner.

Broader Context

Industry leaders in the European Union have repeatedly cautioned for months that their own industry confronts being "eliminated" through the new 50% tariffs on exports to the US along with rising energy prices and low-cost Chinese imports.

Steel on in both the UK and EU is considered a foundational industry, supplying basic materials in products ranging from skyscraper structures, wind turbines and railways to household appliances and cutlery.

Adoption and Future Actions

The new measures require approval by member states and the EU legislature, with the EU executive head urging national governments and MEPs to act fast in support of the proposal.

Should approval be granted, the European Union will reduce its current duty-free quota by forty-seven percent to 18.3 million tons a year, a volume previously recorded in 2013. It will apply a 50% tariff on foreign steel beyond the quota and oblige nations exporting into the EU to state the production origin to prevent circumvention of the sanctions.

Exceptions and Global Partnerships

Norway, Iceland, and Liechtenstein will not be subject to import limits or duties because of their close trading relationship in the EEA, the EU has confirmed.

Alongside the proposal, the EU is seeking a "steel partnership" with the United States to ringfence their national industries from overcapacity.

EU must take immediate action, and decisively, prior to all lights go out in large parts of the European steel sector and its value chains.