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EU officials have announced plans to adopt Donald Trump's import duties on steel, effectively doubling taxes on imports to fifty percent in a move described as "a survival risk" to the sector in Britain.

Unprecedented Crisis for UK Steel Exports

With 80% of British exports destined for the European Union, this change poses the UK steel industry's largest crisis, according to the industry association representing the industry.

European Commission Measures and Rules

Through its proposal presented to the European parliament on Tuesday, the EU executive also proposed cutting the existing quota for duty-free imports and requiring international producers to disclose the origin of steel production to stop China diverting exports through other countries.

EU steel sector stood at the brink of failure – these measures safeguard it so that it can invest, reduce emissions, and regain competitiveness.

Overhaul of Existing System

The proposals 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framework that has been functioning for the past seven years and which is due to expire in 2026 and is now considered outdated. Inaction could have been "catastrophic" for the industry, a European official stated.

Industry Response and Warnings

However, industry representatives, from the trade association British Steel, said Brussels increasing duties would pose "the most severe challenge the UK steel industry has encountered".

There were calls for the UK authorities to "acknowledge the critical necessity to implement its own measures to defend" the British steel sector – which is still reeling from a 25% duty imposed by Trump earlier this year – from the risk of vast quantities of global steel redirected from US and European markets.

This flood of imports "could be terminal for many of our remaining steel companies.

Labor and Political Calls

Union leaders, assistant general secretary at steelworkers' union Community, stated the proposed changes represented "a survival risk" to UK steel.

Unions and industry leaders called on Keir Starmer to begin talks urgently with the EU on nation-specific duty-free quotas, noting that the United Kingdom was now the EU's No 1 trading partner.

Broader Context

Industry leaders in the EU have also been warning for several months that their own industry confronts being "eliminated" through the increased duties on American market shipments combined with rising energy prices and cheap Chinese competition.

Steel on in both the UK and EU is described as a essential sector, supplying elemental components in everything from building frameworks, wind turbines and railways to dishwashers and kitchenware.

Adoption and Next Steps

The new measures require approval by EU nations and the European parliament, with the EU executive head urging national governments and European parliament members to move quickly in support of the initiative.

If the plan is ratified, the European Union will reduce its existing tariff-free allowance by 47% to 18.3 million tons a annually, a level last seen in 2013. It will apply a fifty percent tariff on foreign steel exceeding the limit and require nations exporting into the EU to declare where the steel was melted and poured to avoid bypassing of the sanctions.

Exemptions and Global Partnerships

These European nations will be exempt from tariff quotas or duties due to their strong economic ties in the EEA, the European Union has confirmed.

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

The European Union needs to act now, and decisively, before operations cease in significant portions of the EU steel industry and its supply networks.