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The European Union revealed they will adopt the United States' steel tariffs, increasing to double levies on foreign steel to 50% in a move described as "an existential threat" to the industry in Britain.

Unprecedented Crisis for UK Steel Industry

Given that 80% of UK steel shipments destined for the EU, this change represents the British steel sector's largest crisis, as stated by the lobby group representing the sector.

European Commission Measures and Regulations

Through its proposal submitted to the European parliament on Tuesday, the EU executive also proposed cutting the current allowance for tariff-exempt steel and requiring international producers to state 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 – we are protecting it so that it can invest, reduce emissions, and regain competitiveness.

Overhaul of Current Framework

These measures are intended to replace a import framework that has been functioning for the past seven years and which is due to expire in 2026 and is now seen as outdated. Inaction could have been "catastrophic" for the sector, one EU official stated.

Sector Reaction and Warnings

Nevertheless, industry representatives, head of the trade association UK Steel, said EU increasing duties would create "the biggest crisis the British steel sector has ever faced".

He called on the government to "acknowledge the critical necessity to implement domestic protections to protect" the British steel sector – which is affected by a 25% duty imposed by the US recently – from the risk of millions of tonnes of world steel redirected from American and EU markets.

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

Labor and Political Calls

Alasdair McDiarmid, assistant general secretary at labor union Community, said the new measures posed "a survival risk" to British steel production.

Labor and business representatives called on Keir Starmer to start negotiations immediately with the EU on nation-specific duty-free quotas, noting that the United Kingdom was now the European Union's primary trading partner.

Broader Context

Industry leaders in the European Union have repeatedly cautioned for several months that their own industry faces being "wiped out" through the new 50% tariffs on exports to the US combined with rising energy prices and low-cost Chinese imports.

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

Implementation and Future Actions

These proposals require approval by member states and the EU legislature, with the EU executive head urging member states and European parliament members to act fast in backing the initiative.

If the plan is ratified, the European Union will reduce its current duty-free quota by 47% to 18.3 million tons a year, a volume previously recorded in 2013. It will impose a 50% duty on foreign steel exceeding the limit and oblige nations shipping to the EU to declare the production origin to avoid bypassing of the sanctions.

Exemptions and Global Partnerships

These European nations will be exempt from import limits or tariffs because of their close trading relationship in the EEA, the EU has confirmed.

In addition to these measures, the EU is pursuing a "metals alliance" with the US to protect their national industries from excess production.

EU must take immediate action, and decisively, prior to operations cease in large parts of the EU steel industry and its supply networks.