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The European Union have announced plans to adopt Donald Trump's import duties on steel, effectively doubling taxes on foreign steel to fifty percent in a move described as "an existential threat" to the sector in Britain.

Unprecedented Crisis for UK Steel Industry

With eighty percent of UK steel shipments going to the European Union, this policy shift represents the British steel sector's most severe crisis, as stated by the lobby group representing the sector.

European Commission Measures and Regulations

In its plan presented to the European parliament on Tuesday, the EU executive additionally suggested slashing the existing quota for tariff-exempt steel and obliging foreign suppliers to state the origin of steel production to stop China 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 regain competitiveness.

Replacement of Current Framework

The proposals are designed 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system that has been functioning for the last seven years and which is set to expire in 2026 and is now considered outdated. To do nothing could have been "catastrophic" for the sector, one EU official stated.

Industry Reaction and Concerns

Nevertheless, industry representatives, head of the industry body British Steel, stated Brussels increasing duties would pose "the most severe challenge the UK steel industry has encountered".

There were calls for the UK authorities to "acknowledge the urgent need to implement domestic protections to defend" the British steel sector – which is still reeling from a 25% duty imposed by the US earlier this year – from the risk of vast quantities of world steel diverted away from US and European markets.

This surge in foreign steel "could be fatal for numerous steel companies.

Union and Political Pressure

Union leaders, assistant general secretary at steelworkers' union the industry union, said the new measures represented "a survival risk" to UK steel.

Unions and industry leaders called on the UK government to start negotiations urgently with the EU on country-specific tariff exemptions, noting that the United Kingdom was now the EU's primary trading partner.

Broader Context

Industry leaders in the EU have repeatedly cautioned for months that their own industry confronts being "wiped out" through the new 50% tariffs on exports to the US along with high energy costs and low-cost Chinese imports.

The steel industry on both sides of the Channel is considered a foundational industry, providing basic materials in everything from building frameworks, renewable energy equipment and railways to dishwashers and cutlery.

Implementation and Next Steps

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

Should approval be granted, the EU will cut its existing tariff-free allowance by forty-seven percent to 18.3 million tons a annually, a volume last seen in 2013. It will impose a fifty percent duty on imports exceeding the limit and require nations exporting into the bloc to declare the production origin to prevent circumvention of the sanctions.

Exemptions and International Cooperation

These European nations will not be subject to import limits or duties due to their strong economic ties in the EEA, the EU has confirmed.

Alongside the proposal, the EU is pursuing a "metals alliance" with the US to ringfence their respective economies from overcapacity.

The European Union needs to act now, and firmly, prior to operations cease in large parts of the European steel sector and its supply networks.