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The European Union declared they will adopt Donald Trump's steel tariffs, effectively doubling levies on imports to fifty percent in a move described as "an existential threat" to the sector in Britain.

Unprecedented Crisis for UK Steel Industry

With 80% of British exports going to the European Union, this policy shift creates the British steel sector's most severe challenge, as stated by the industry association representing the sector.

European Commission Measures and Rules

In its plan submitted to the EU legislature this week, the EU executive additionally suggested slashing the existing quota for tariff-exempt steel and requiring foreign suppliers to disclose where the steel was melted and poured to prevent China diverting exports through third nations.

EU steel sector faced potential collapse – these measures safeguard it so that it can invest, decarbonise, and become competitive again.

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 seen as ineffective. To do nothing could have been "fatal" for the sector, a European official said.

Sector Response and Concerns

Nevertheless, Gareth Stace, from the trade association UK Steel, said Brussels increasing duties would create "the most severe challenge the British steel sector has ever faced".

There were calls for the government to "recognise the urgent need to implement its own measures to defend" the British steel sector – which is still reeling from a twenty-five percent tariff imposed by Trump recently – from the risk of vast quantities of world steel redirected from American and EU markets.

This surge in foreign steel "might prove terminal for numerous steel companies.

Union and Political Calls

Alasdair McDiarmid, representative at steelworkers' union Community, stated the proposed changes posed "an existential threat" to British steel production.

Unions and industry leaders urged Keir Starmer to start negotiations immediately with the EU on country-specific tariff exemptions, noting that the United Kingdom was now the European Union's No 1 trading partner.

Broader Context

Industry leaders in the European Union have repeatedly cautioned for months that the European steel sector confronts being "wiped out" through the new 50% tariffs on exports to the US along with rising energy prices and low-cost Chinese imports.

Steel on in both the UK and EU is described as a foundational industry, supplying elemental components in products ranging from skyscraper structures, renewable energy equipment and transport infrastructure to dishwashers and cutlery.

Adoption and Next Steps

The new measures must be agreed by member states and the European parliament, with the EU executive head calling on member states and MEPs to act fast in support of the initiative.

Should approval be granted, the European Union will cut its existing tariff-free allowance by 47% to 18.3m tonnes a year, a volume last seen in 2013. It will impose a fifty percent duty on imports exceeding the limit and require nations exporting into the bloc to declare the production origin to prevent circumvention of the sanctions.

Exceptions and International Cooperation

Norway, Iceland, and Liechtenstein will not be subject to import limits or duties because of their close trading relationship in the EEA, the European Union has confirmed.

In addition to these measures, the European Union is pursuing a "steel partnership" with the US to ringfence their national industries from excess production.

The European Union must take immediate action, and firmly, before operations cease in large parts of the European steel sector and its value chains.