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EU officials revealed they will adopt Donald Trump's steel tariffs, increasing to double taxes on imports to 50% in a decision described as "a survival risk" to the sector in the UK.

Unprecedented Crisis for British Steel Industry

Given that eighty percent of UK steel shipments destined for the EU, this policy shift creates the British steel sector's most severe challenge, according to the industry association speaking for the industry.

European Commission Measures and Regulations

In its plan presented to the European parliament this week, the EU executive also proposed reducing the current allowance for tariff-exempt steel and requiring international producers to disclose where the steel was melted and poured to prevent China diverting exports through third nations.

The European steel industry faced potential collapse – these measures safeguard 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framework that has been in operation for the past seven years and which is set to expire in 2026 and is now considered outdated. Inaction could have been "fatal" for the sector, one EU official said.

Industry Response and Warnings

However, Gareth Stace, from the trade association UK Steel, said EU doubling its tariffs would pose "the biggest crisis the UK steel industry has encountered".

There were calls for the government to "acknowledge the critical necessity to put in place its own measures to defend" the UK steel industry – which is still reeling from a 25% tariff from the US 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 fatal for many of our remaining steel companies.

Labor and Government Pressure

Union leaders, representative at labor union the industry union, said the proposed changes represented "an existential threat" to British steel production.

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

Industry Background

Sector representatives in the European Union have repeatedly cautioned for months that their own industry confronts being "wiped out" through the new 50% tariffs on American market shipments combined with high energy costs and low-cost Chinese imports.

Steel on both sides of the Channel is described as a foundational industry, supplying basic materials in products ranging from building frameworks, renewable energy equipment and transport infrastructure to household appliances and kitchenware.

Adoption and Next Steps

The new measures require approval by member states and the EU legislature, with the European Commission president calling on national governments and European parliament members to move quickly in support of the proposal.

If the plan is ratified, the EU will cut its existing tariff-free allowance by 47% to 18.3 million tons a annually, a volume last seen in 2013. It will impose a 50% tariff on foreign steel beyond the quota and require countries shipping to the EU to declare where the steel was melted and poured to prevent circumvention of the measures.

Exemptions and Global Partnerships

Norway, Iceland, and Liechtenstein will be exempt from tariff quotas or tariffs due to their strong economic ties in the EEA, the European Union has said.

Alongside the proposal, the European Union is pursuing a "steel partnership" with the United States to protect their respective economies from overcapacity.

EU needs to act now, and firmly, before all lights go out in significant portions of the EU steel industry and its value chains.