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The European Union have announced plans to adopt the United States' import duties on steel, effectively doubling taxes on imports to fifty percent in a move described as "a survival risk" to the industry in Britain.

Major Challenge for UK Steel Exports

With eighty percent of British exports going to the European Union, this change creates the UK steel industry's biggest ever challenge, as stated by the industry association speaking for the industry.

European Commission Proposals and Regulations

Through its proposal submitted to the EU legislature this week, the EU executive also proposed slashing the current allowance for duty-free imports and requiring international producers to disclose the origin of steel production to prevent Chinese producers diverting exports through other countries.

EU steel sector stood at the brink of failure – these measures safeguard it so that investments can be made, decarbonise, and become competitive again.

Overhaul of Current Framework

The proposals are intended to replace a import framework that has been functioning for the last seven years and which is due to expire in 2026 and is now seen as not fit for purpose. Inaction could have been "catastrophic" for the industry, one EU official said.

Industry Reaction and Concerns

Nevertheless, industry representatives, head of the industry body UK Steel, stated EU increasing duties would create "the biggest crisis the UK steel industry has ever faced".

He called on the UK authorities to "acknowledge the urgent need to put in place its own measures to protect" the British steel sector – which is still reeling from a 25% duty from Trump recently – from the risk of millions of tonnes of world steel diverted away from US and European markets.

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

Labor and Government Pressure

Alasdair McDiarmid, assistant general secretary at steelworkers' union Community, said the new measures posed "an existential threat" to British steel production.

Labor and business representatives called on the UK government to start negotiations immediately with the European Union on nation-specific tariff exemptions, noting that the UK was now the European Union's No 1 trading partner.

Broader Context

Sector representatives in the European Union have also been warning for months that their own industry confronts being "eliminated" through the increased duties on American market shipments combined with high energy costs and low-cost Chinese imports.

The steel industry on both sides of the Channel is described as a foundational industry, supplying elemental components in everything from skyscraper structures, renewable energy equipment and transport infrastructure to dishwashers and cutlery.

Adoption and Future Actions

These proposals must be agreed by EU nations and the European parliament, with the European Commission president calling on national governments and European parliament members to act fast in backing the initiative.

Should approval be granted, the European Union will reduce its existing tariff-free allowance by forty-seven percent to 18.3 million tons a annually, a level last seen in 2013. It will impose a 50% tariff on foreign steel beyond the quota and require nations exporting into the bloc to declare where the steel was melted and poured to avoid bypassing of the measures.

Exceptions and Global Partnerships

Norway, Iceland, and Liechtenstein will be exempt from tariff quotas or tariffs because of their strong economic ties in the European Economic Area, the European Union has said.

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

The European Union needs to act now, and firmly, prior to all lights go out in significant portions of the EU steel industry and its supply networks.