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EU officials have announced plans to adopt Donald Trump's steel tariffs, increasing to double taxes on imports to fifty percent in a action described as "a critical danger" to the industry in Britain.

Major Challenge for UK Steel Exports

Given that 80% of UK steel shipments going to the EU, this change creates the British steel sector's most severe crisis, as stated by the lobby group representing the industry.

European Commission Proposals and Rules

In its plan presented to the EU legislature this week, the European Commission additionally suggested cutting the current allowance for duty-free imports and obliging foreign suppliers to state where the steel was melted and poured to stop Chinese producers diverting exports through third nations.

The European steel industry was on the verge of collapse – these measures safeguard it so that investments can be made, decarbonise, and regain competitiveness.

Replacement of Current Framework

The proposals are intended to supersede a import framework that has been in operation for the past seven years and which is due to expire in 2026 and is now considered outdated. Inaction could have been "catastrophic" for the sector, a European official said.

Industry Reaction and Concerns

Nevertheless, industry representatives, from the trade association British Steel, stated EU increasing duties would create "the biggest crisis the UK steel industry has ever faced".

There were calls for the government to "acknowledge the critical necessity to implement its own measures to defend" the British steel sector – which is affected by a 25% tariff from the US earlier this year – from the risk of vast quantities of world steel diverted away from American and EU markets.

This surge in foreign steel "might prove fatal for many of our remaining steel companies.

Union and Political Pressure

Union leaders, assistant general secretary at labor union Community, stated the new measures posed "an existential threat" to UK steel.

Labor and business representatives urged Keir Starmer to start negotiations urgently with the European Union on nation-specific tariff exemptions, noting that the United Kingdom was now the EU's No 1 export market.

Industry Background

Sector representatives in the European Union have repeatedly cautioned for several months that their own industry faces being "wiped out" through the new 50% tariffs on American market shipments combined with rising energy prices and cheap Chinese competition.

Steel on in both the UK and EU is considered a essential sector, providing elemental components in everything from building frameworks, wind turbines and railways to dishwashers and cutlery.

Implementation and Future Actions

These proposals require approval by member states and the European parliament, with the European Commission president calling on member states and European parliament members to act fast in support of the initiative.

If the plan is ratified, the EU will cut its current duty-free quota by 47% to 18.3m tonnes a annually, a level last seen in 2013. It will impose a 50% duty on foreign steel exceeding the limit and require nations exporting into the EU to state where the steel was melted and poured to prevent circumvention of the measures.

Exemptions and International Cooperation

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

In addition to these measures, the EU is seeking a "metals alliance" with the US to ringfence their national industries from overcapacity.

The European Union must take immediate action, and firmly, before all lights go out in large parts of the European steel sector and its supply networks.