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The European Union have announced plans to adopt Donald Trump's import duties on steel, increasing to double levies on imports to 50% in a decision condemned as "a survival risk" to the industry in the UK.

Unprecedented Crisis for UK Steel Exports

Given that eighty percent of UK steel shipments going to the European Union, this change poses the British steel sector's largest challenge, as stated by the industry association representing the sector.

European Commission Measures and Rules

Through its proposal presented to the EU legislature on Tuesday, the EU executive additionally suggested slashing the existing quota for duty-free imports and obliging foreign suppliers to state the origin of steel production to stop Chinese producers diverting exports through other countries.

The European steel industry was on the verge of collapse – these measures safeguard it so that investments can be made, reduce emissions, and become competitive again.

Overhaul of Existing System

The proposals are intended to replace a quota system that has been functioning 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 "catastrophic" for the industry, a European official stated.

Sector Reaction and Warnings

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

He called on the government to "acknowledge the critical necessity to implement its own measures to protect" the UK steel industry – which is still reeling from a 25% duty imposed by Trump recently – from the risk of vast quantities of global steel redirected from American and EU markets.

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

Union and Government Calls

Union leaders, representative at steelworkers' union Community, said the new measures represented "a survival risk" to UK steel.

Unions and industry leaders called on Keir Starmer to start negotiations immediately with the EU on nation-specific tariff exemptions, pointing out that the United Kingdom was now the EU's primary trading partner.

Broader Context

Sector representatives in the European Union have also been warning for several months that their own industry confronts being "eliminated" through the increased duties on American market shipments along with high energy costs and low-cost Chinese imports.

The steel industry on both sides of the Channel is described as a foundational industry, supplying basic materials in products ranging from building frameworks, wind turbines and railways to household appliances and cutlery.

Implementation and Future Actions

The new measures must be agreed by EU nations and the European parliament, with the European Commission president urging member states and MEPs to move quickly in support of the proposal.

Should approval be granted, the EU will cut its current duty-free quota by forty-seven percent to 18.3m tonnes a annually, a volume last seen in 2013. It will impose a 50% tariff on foreign steel exceeding the limit and oblige nations shipping to the bloc to declare the production origin to avoid bypassing of the sanctions.

Exemptions and International Cooperation

Norway, Iceland, and Liechtenstein will be exempt from import limits or tariffs because of their close trading relationship in the EEA, the EU has confirmed.

In addition to these measures, the European Union is seeking a "steel partnership" with the US to protect their respective economies from excess production.

EU needs to act now, and decisively, before all lights go out in large parts of the EU steel industry and its supply networks.