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

Major Challenge for UK Steel Industry

Given that eighty percent of British exports destined for the EU, this policy shift represents the British steel sector's most severe challenge, according to the industry association speaking for the sector.

European Commission Proposals and Rules

In its plan submitted to the European parliament on Tuesday, the EU executive additionally suggested cutting the existing quota for duty-free imports and obliging foreign suppliers to state where the steel was melted and poured to prevent China diverting exports through other countries.

The European steel industry faced potential collapse – these measures safeguard it so that it can invest, reduce emissions, and become competitive again.

Overhaul of Current Framework

These measures are designed to replace a quota system that has been functioning for the past seven years and which is due to expire in 2026 and is now seen as outdated. Inaction could have been "disastrous" for the sector, a European official said.

Sector Reaction and Warnings

However, Gareth Stace, from the trade association British Steel, said Brussels increasing duties would create "the biggest crisis the British steel sector has encountered".

There were calls for the government to "acknowledge the critical necessity to put in place its own measures to protect" the UK steel industry – which is still reeling from a 25% tariff imposed by the US earlier this year – 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.

Labor and Political Pressure

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

Labor and business representatives urged the UK government to start negotiations immediately with the EU on country-specific duty-free quotas, pointing out that the UK was now the EU's No 1 trading partner.

Industry Background

Sector representatives in the European Union have repeatedly cautioned for months that the European steel sector faces being "wiped out" through the increased duties on exports to the US along with rising energy prices and cheap Chinese competition.

Steel on in both the UK and EU is considered a foundational industry, providing basic materials in products ranging from skyscraper structures, renewable energy equipment and railways to dishwashers and cutlery.

Adoption and Future Actions

The new measures must be agreed by EU nations and the EU legislature, with the EU executive head calling on national governments and European parliament members to move quickly in backing the proposal.

If the plan is ratified, the European Union will cut its current duty-free quota by forty-seven percent to 18.3m tonnes a year, a volume last seen in 2013. It will impose a 50% duty on imports exceeding the limit and oblige nations shipping to the bloc to state where the steel was melted and poured to avoid bypassing of the sanctions.

Exemptions and Global Partnerships

These European nations will not be subject to import limits or duties because of their close trading relationship in the EEA, the EU has confirmed.

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

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