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EU officials revealed they will adopt Donald Trump's steel tariffs, increasing to double levies on imports to fifty percent in a move condemned as "a critical danger" to the industry in the UK.

Major Challenge for British Steel Industry

Given that 80% of UK steel shipments going to the European Union, this change creates the British steel sector's largest challenge, as stated by the industry association representing the industry.

European Commission Measures and Regulations

Through its proposal submitted to the European parliament this week, the European Commission also proposed cutting the current allowance for tariff-exempt steel and obliging foreign suppliers to state where the steel was melted and poured to stop Chinese producers sneaking products in through third nations.

The European steel industry faced potential collapse – these measures safeguard it so that investments can be made, decarbonise, and regain competitiveness.

Replacement of Current Framework

These measures are intended to supersede 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framework that has been in operation for the past seven years and which is set to expire in 2026 and is now seen as outdated. Inaction could have been "disastrous" for the industry, a European official stated.

Industry Response and Warnings

However, Gareth Stace, head of the trade association UK Steel, said EU increasing duties would pose "the biggest crisis the UK steel industry has encountered".

There were calls for the government to "recognise the critical necessity to implement its own measures to defend" the UK steel industry – which is still reeling from a twenty-five percent duty from the US recently – from the risk of millions of tonnes of global steel redirected from US and European markets.

This flood of imports "might prove fatal for many of our remaining steel companies.

Labor and Political Calls

Union leaders, assistant general secretary at labor union the industry union, stated the proposed changes represented "an existential threat" to British steel production.

Unions and industry leaders called on Keir Starmer to begin talks urgently with the EU on country-specific tariff exemptions, pointing out that the United Kingdom was now the EU's primary trading partner.

Broader Context

Sector representatives in the EU have also been warning for months that their own industry faces being "wiped out" through the new 50% tariffs on exports to the US along with high energy costs and low-cost Chinese imports.

The steel industry on in both the UK and EU is described as a foundational industry, supplying elemental components in everything from skyscraper structures, wind turbines and transport infrastructure to household appliances and kitchenware.

Implementation and Future Actions

The new measures must be agreed by member states and the EU legislature, with the EU executive head 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 47% to 18.3m tonnes a year, a level last seen in 2013. It will apply a fifty percent tariff on foreign steel beyond the quota and oblige countries exporting into the EU to declare where the steel was melted and poured to prevent circumvention of the measures.

Exemptions and International Cooperation

Norway, Iceland, and Liechtenstein will not be subject to tariff quotas or duties due to their strong economic ties in the EEA, the European Union has confirmed.

Alongside the proposal, the EU is pursuing a "metals alliance" with the United States to ringfence their respective economies from excess production.

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