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

Major Challenge for British Steel Exports

With eighty percent of UK steel shipments destined for the EU, this change poses the British steel sector's largest challenge, as stated by the lobby group speaking for the industry.

New EU Measures and Regulations

In its plan presented to the European parliament on Tuesday, the European Commission also proposed reducing the current allowance for duty-free imports and requiring international producers to disclose the origin of steel production to stop China sneaking products in through other countries.

The European steel industry stood at the brink of failure – we are protecting it so that it can invest, decarbonise, and become competitive again.

Overhaul of Existing System

These measures are designed to replace a quota system that has been in operation for the last seven years and which is due to expire in 2026 and is now considered not fit for purpose. Inaction could have been "catastrophic" for the industry, a European official stated.

Sector Reaction and Concerns

However, Gareth Stace, head of the industry body UK Steel, said Brussels increasing duties would pose "the biggest crisis the British steel sector has ever faced".

There were calls for the government to "recognise the urgent need to put in place its own measures to protect" the UK steel industry – which is still reeling from a 25% duty from Trump earlier this year – from the threat of millions of tonnes of world steel redirected from American and EU markets.

This flood of imports "might prove terminal for numerous steel companies.

Union and Government Calls

Alasdair McDiarmid, assistant general secretary at steelworkers' union the industry union, said the proposed changes posed "an existential threat" to British steel production.

Unions and industry leaders urged Keir Starmer to begin talks immediately with the European Union 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 also been warning for several months that the European steel sector faces being "wiped out" through the increased duties on American market shipments combined with rising energy prices and cheap Chinese competition.

Steel on both sides of the Channel is considered a essential sector, providing basic materials in products ranging from building frameworks, renewable energy equipment and railways to dishwashers and kitchenware.

Implementation and Future Actions

The new measures must be agreed by EU nations and the EU legislature, with the EU executive head calling on member states and MEPs to move quickly in support of 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 level last seen in 2013. It will apply a fifty percent tariff on imports exceeding the limit and oblige nations shipping to the bloc to state the production origin to avoid bypassing of the sanctions.

Exceptions and International Cooperation

Norway, Iceland, and Liechtenstein will be exempt from tariff quotas or duties because of their close trading relationship in the EEA, the European Union has said.

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

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