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EU officials revealed they will adopt Donald Trump's steel tariffs, effectively doubling levies on imports to fifty percent in a decision described as "a survival risk" to the industry in the UK.

Major Challenge for British Steel Industry

With eighty percent of British exports going to the EU, this policy shift represents the UK steel industry's biggest ever challenge, according to the industry association representing the industry.

European Commission Measures and Rules

In its plan presented to the EU legislature this week, the EU executive additionally suggested reducing the existing quota for tariff-exempt steel and requiring international producers to declare where the steel was melted and poured to stop Chinese producers diverting exports through third nations.

EU steel sector stood at the brink of failure – we are protecting it so that investments can be made, decarbonise, and regain competitiveness.

Replacement of Current Framework

These measures are intended to replace a quota system that has been in operation for the last seven years and which is set to expire in 2026 and is now considered not fit for purpose. Inaction could have been "disastrous" for the industry, a European official said.

Sector Response and Warnings

However, Gareth Stace, head of the trade association UK Steel, stated Brussels increasing duties would create "the biggest crisis the British steel sector has ever faced".

He called on the UK authorities to "recognise the urgent need to put in place domestic protections to defend" the British steel sector – which is still reeling from a 25% tariff imposed by Trump recently – from the risk of vast quantities of global steel diverted away from American and EU markets.

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

Labor and Government Pressure

Union leaders, representative at labor union Community, said the new measures posed "an existential threat" to British steel production.

Labor and business representatives called on the UK government to begin talks immediately with the EU on nation-specific tariff exemptions, noting that the UK was now the European Union's primary trading partner.

Industry Background

Industry leaders in the European Union have also been warning for months that their own industry faces being "eliminated" through the increased duties on exports to the US combined 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 building frameworks, wind turbines and railways to household appliances and kitchenware.

Adoption and Next Steps

The new measures require approval by EU nations and the EU legislature, with the EU executive head calling on national governments and MEPs to act fast in backing the initiative.

If the plan is ratified, the European Union will reduce its current duty-free quota by forty-seven percent to 18.3 million tons a annually, a level last seen in 2013. It will apply a fifty percent duty on foreign steel exceeding the limit and require countries exporting into the EU to declare where the steel was melted and poured to avoid bypassing 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 said.

Alongside the proposal, the EU is seeking a "metals alliance" with the US to ringfence their national industries from excess production.

The European Union needs to act now, and firmly, before all lights go out in significant portions of the EU steel industry and its value chains.