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The European Union have announced plans to adopt Donald Trump's steel tariffs, effectively doubling levies on foreign steel to 50% in a decision condemned as "a survival risk" to the industry in Britain.

Unprecedented Crisis for British Steel Exports

Given that eighty percent of UK steel shipments destined for the European Union, this change creates the British steel sector's most severe challenge, according to the lobby group speaking for the sector.

European Commission Measures and Rules

In its plan submitted to the EU legislature this week, the EU executive also proposed slashing the existing quota for tariff-exempt steel and requiring international producers to declare the origin of steel production to stop Chinese producers diverting exports through third nations.

EU steel sector faced potential collapse – these measures safeguard it so that investments can be made, reduce emissions, and regain competitiveness.

Overhaul of Current Framework

These measures are intended to replace a import framework that has been in operation for the last seven years and which is set to expire in 2026 and is now considered not fit for purpose. Inaction could have been "disastrous" for the sector, one EU official said.

Sector Reaction and Warnings

However, industry representatives, from the industry body British Steel, stated Brussels increasing duties would create "the most severe challenge the UK steel industry has ever faced".

There were calls for the UK authorities to "acknowledge the urgent need to implement its own measures to defend" the UK steel industry – which is still reeling from a 25% 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 "could be fatal for many of our remaining steel companies.

Union and Political Pressure

Alasdair McDiarmid, assistant general secretary at steelworkers' union Community, stated the new measures represented "an existential threat" to UK steel.

Unions and industry leaders urged the UK government to start negotiations immediately with the EU on nation-specific duty-free quotas, noting that the United Kingdom was now the EU's primary trading partner.

Industry Background

Industry leaders in the European Union 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 cheap Chinese competition.

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

Implementation and Future Actions

These proposals must be agreed by member states and the European parliament, with the EU executive head calling on member states and European parliament members to move quickly in backing the initiative.

If the plan is ratified, the EU will cut its current duty-free quota by 47% to 18.3m tonnes a annually, a level previously recorded in 2013. It will apply a fifty percent tariff on imports exceeding the limit and require countries shipping to the EU to state the production origin to prevent circumvention of the sanctions.

Exemptions and Global Partnerships

These European nations will be exempt from import limits or tariffs because of their strong economic ties in the EEA, the European Union has said.

In addition to these measures, the EU is pursuing a "metals alliance" with the United States to ringfence their respective economies from excess production.

EU must take immediate action, and decisively, prior to all lights go out in large parts of the EU steel industry and its supply networks.