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The European Union declared they will adopt Donald Trump's import duties on steel, effectively doubling levies on imports to 50% in a action condemned as "a survival risk" to the industry in Britain.

Major Challenge for UK Steel Exports

With eighty percent of British exports going to the EU, this policy shift represents the British steel sector's largest challenge, as stated by the industry association speaking for the sector.

New EU Measures and Regulations

Through its proposal submitted to the European parliament on Tuesday, the European Commission also proposed cutting the current allowance for duty-free imports and obliging foreign suppliers to disclose where the steel was melted and poured to stop Chinese producers sneaking products in through third nations.

The European steel industry was on the verge of collapse – these measures safeguard it so that investments can be made, reduce emissions, and become competitive again.

Replacement of Existing System

The proposals are intended to replace a import framework that has been functioning for the past seven years and which is set to expire in 2026 and is now considered not fit for purpose. To do nothing could have been "disastrous" for the industry, one EU official stated.

Sector Response and Concerns

Nevertheless, Gareth Stace, from the trade association British Steel, stated Brussels increasing duties would pose "the biggest crisis the UK steel industry has encountered".

There were calls for the UK authorities to "recognise the urgent need to put in place its own measures to defend" the British steel sector – which is still reeling from a 25% tariff imposed by the US earlier this year – from the risk of millions of tonnes of global steel redirected from US and European markets.

This flood of imports "might prove terminal for many of our remaining steel companies.

Labor and Government Pressure

Union leaders, representative at steelworkers' union the industry union, stated the new measures posed "a survival risk" to UK steel.

Unions and industry leaders urged the UK government to begin talks immediately with the European Union on country-specific tariff exemptions, pointing out that the UK was now the European Union's primary trading partner.

Broader Context

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

The steel industry on both sides of the Channel is considered a foundational industry, supplying basic materials in products ranging from skyscraper structures, renewable energy equipment and railways to household appliances and kitchenware.

Adoption and Next Steps

The new measures must be agreed by EU nations and the EU legislature, with the European Commission president calling on member states and MEPs to move quickly in support of the proposal.

If the plan is ratified, the European Union will cut its current duty-free quota by 47% to 18.3m tonnes a annually, a volume last seen in 2013. It will apply a 50% tariff on imports exceeding the limit and oblige countries shipping to the bloc to state where the steel was melted and poured to avoid bypassing of the sanctions.

Exceptions and Global Partnerships

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

Alongside the proposal, the EU is pursuing a "steel partnership" with the US to protect their national industries from excess production.

EU needs to act now, and decisively, before operations cease in significant portions of the EU steel industry and its supply networks.