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The European Union revealed plans to adopt the United States' steel tariffs, increasing to double taxes on foreign steel to fifty percent in a decision described as "an existential threat" to the industry in Britain.

Major Challenge for UK Steel Industry

With eighty percent of UK steel shipments going to the European Union, this change poses the UK steel industry's largest crisis, according to the lobby group speaking for the industry.

European Commission Measures and Rules

In its plan submitted to the European parliament this week, the EU executive also proposed reducing the current allowance for duty-free imports and obliging foreign suppliers to state where the steel was melted and poured to stop Chinese producers diverting exports through third nations.

The European steel industry was on the verge of collapse – we are protecting it so that it can invest, decarbonise, and become competitive again.

Overhaul of Current Framework

These measures are designed to supersede a quota system that has been in operation for the last seven years and which is due to expire in 2026 and is now seen as outdated. To do nothing could have been "fatal" for the industry, one EU official stated.

Industry Reaction and Concerns

However, Gareth Stace, from the industry body UK Steel, stated Brussels increasing duties would pose "the biggest crisis the UK steel industry has ever faced".

He called on the UK authorities to "recognise the critical necessity to implement its own measures to defend" the British steel sector – which is still reeling from a 25% tariff from Trump recently – from the threat of vast quantities of global steel redirected from American and EU markets.

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

Labor and Government Pressure

Union leaders, assistant general secretary at labor union Community, said the new measures posed "an existential threat" to UK steel.

Labor and business representatives urged Keir Starmer to begin talks urgently with the EU on country-specific tariff exemptions, noting that the UK was now the EU's No 1 export market.

Broader Context

Industry leaders in the EU have repeatedly cautioned for months that their own industry faces being "wiped out" 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 considered a foundational industry, supplying elemental components in everything from skyscraper structures, renewable energy equipment and railways to household appliances and cutlery.

Adoption and Future Actions

The new measures must be agreed by member states and the EU legislature, with the European Commission president calling on member states and European parliament members to move quickly in backing the initiative.

Should approval be granted, the EU will cut its existing tariff-free allowance by 47% to 18.3 million tons a annually, a volume previously recorded in 2013. It will impose a 50% duty on imports exceeding the limit and require countries shipping to the EU to state the production origin to avoid bypassing of the sanctions.

Exceptions and Global Partnerships

Norway, Iceland, and Liechtenstein will be exempt from tariff quotas or duties due to their strong economic ties in the European Economic Area, the EU has said.

In addition to these measures, the EU is seeking a "metals alliance" with the United States to protect their respective economies from excess production.

The European Union must take immediate action, and decisively, prior to all lights go out in large parts of the EU steel industry and its value chains.