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The European Union have announced plans to adopt the United States' import duties on steel, effectively doubling levies on imports to fifty percent in a action condemned as "a critical danger" to the industry in Britain.

Unprecedented Crisis for UK Steel Exports

Given that 80% of UK steel shipments destined for the EU, this policy shift represents the UK steel industry's biggest ever challenge, as stated by the industry association speaking for the industry.

European Commission Measures and Regulations

Through its proposal presented to the European parliament on Tuesday, the EU executive also proposed cutting the existing quota for tariff-exempt steel and requiring foreign suppliers to declare the origin of steel production to stop Chinese producers diverting exports through third nations.

EU steel sector was on the verge of collapse – these measures safeguard it so that it can invest, decarbonise, and regain competitiveness.

Overhaul of Existing System

The proposals are designed to replace a import framework that has been functioning for the past seven years and which is set to expire in 2026 and is now considered not fit for purpose. Inaction could have been "catastrophic" for the industry, a European official stated.

Industry Reaction and Warnings

However, industry representatives, head of the industry body UK Steel, stated EU increasing duties would create "the biggest crisis the British steel sector has ever faced".

There were calls for the UK authorities to "recognise the urgent need to put in place its own measures to defend" the British steel sector – which is still reeling from a twenty-five percent tariff from Trump recently – from the threat of millions of tonnes of global steel redirected from US and European markets.

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

Union and Political Calls

Alasdair McDiarmid, representative at labor union the industry union, said the proposed changes represented "a survival risk" to UK steel.

Labor and business representatives called on the UK government to begin talks immediately with the European Union on country-specific tariff exemptions, noting that the United Kingdom was now the EU's No 1 trading partner.

Broader Context

Sector representatives in the EU have repeatedly cautioned for months that the European steel sector confronts being "eliminated" 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 described as a essential sector, providing elemental components in everything from building frameworks, renewable energy equipment and railways to household appliances and cutlery.

Adoption and Future Actions

These proposals must be agreed by member states and the EU legislature, with the European Commission president urging member states and MEPs to act fast in backing the proposal.

Should approval be granted, the EU will reduce its existing tariff-free allowance by forty-seven percent to 18.3 million tons a annually, a level previously recorded in 2013. It will impose a fifty percent duty on foreign steel beyond the quota and require countries shipping to the EU to declare where the steel was melted and poured to avoid bypassing of the measures.

Exceptions and Global Partnerships

These European nations will be exempt from import limits or duties because of their strong economic ties in the European Economic Area, the European Union has confirmed.

In addition to these measures, the European Union is pursuing a "metals alliance" with the US to ringfence their respective economies from overcapacity.

The European Union needs to act now, and firmly, before operations cease in significant portions of the European steel sector and its value chains.