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The European Union revealed plans to adopt Donald Trump's steel tariffs, increasing to double taxes on imports to 50% in a decision condemned as "a survival risk" to the industry in the UK.

Major Challenge for British Steel Exports

With eighty percent of British exports going to the European Union, this policy shift creates the British steel sector's most severe crisis, according to the lobby group representing the sector.

New EU Measures and Rules

Through its proposal submitted to the European parliament on Tuesday, the European Commission also proposed slashing the current allowance for tariff-exempt steel and obliging foreign suppliers to declare where the steel was melted and poured to stop Chinese producers diverting exports through other countries.

The European steel industry stood at the brink of failure – these measures safeguard it so that it can invest, decarbonise, and become competitive again.

Overhaul of Existing System

These measures are designed to supersede a quota system that has been functioning for the past seven years and which is set to expire in 2026 and is now seen as not fit for purpose. To do nothing could have been "disastrous" for the sector, one EU official stated.

Sector Reaction and Warnings

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

He called on the UK authorities to "acknowledge the urgent need to implement its own measures to defend" the UK steel industry – which is affected by a twenty-five percent tariff from Trump recently – from the threat of vast quantities of global steel redirected from US and European markets.

This surge in foreign steel "could be fatal for many of our remaining steel companies.

Labor and Political Pressure

Union leaders, representative at steelworkers' union Community, said the proposed changes represented "a survival risk" to UK steel.

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

Industry Background

Sector representatives in the EU have repeatedly cautioned for months that their own industry faces being "wiped out" through the increased duties on American market shipments along with high energy costs and cheap Chinese competition.

Steel on in both the UK and EU is considered a foundational industry, providing elemental components in products ranging from building frameworks, renewable energy equipment and transport infrastructure to dishwashers and kitchenware.

Adoption and Future Actions

These proposals must be agreed by member states and the EU legislature, with the EU executive head urging national governments and MEPs to act fast in backing the proposal.

Should approval be granted, the European Union will cut its current duty-free quota by 47% to 18.3m tonnes a annually, a level previously recorded in 2013. It will impose a fifty percent tariff on imports beyond the quota and oblige nations shipping to the EU to declare the production origin to avoid bypassing of the measures.

Exemptions and International Cooperation

Norway, Iceland, and Liechtenstein will not be subject to tariff quotas or tariffs due to their strong economic ties in the EEA, the EU has said.

In addition to these measures, the European Union is seeking a "steel partnership" with the United States to protect their respective economies from excess production.

EU needs to act now, and firmly, prior to operations cease in large parts of the EU steel industry and its supply networks.