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EU officials declared plans to adopt the United States' steel tariffs, increasing to double levies on foreign steel to fifty percent in a decision described as "a survival risk" to the industry in Britain.

Major Challenge for UK Steel Industry

Given that 80% of UK steel shipments destined for the EU, this policy shift poses the UK steel industry's most severe challenge, as stated by the lobby group representing the sector.

European Commission Measures and Regulations

In its plan presented to the EU legislature this week, the European Commission additionally suggested cutting the current allowance for tariff-exempt steel and requiring foreign suppliers to state where the steel was melted and poured to prevent China diverting exports through other countries.

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

Replacement of Existing System

The proposals are designed to replace a quota system that has been in operation for the past seven years and which is set to expire in 2026 and is now seen as not fit for purpose. Inaction could have been "catastrophic" for the sector, a European official said.

Industry Reaction and Warnings

However, industry representatives, from the trade association British Steel, said EU 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 implement domestic protections to defend" the UK steel industry – which is still reeling from a 25% duty imposed by Trump recently – from the risk 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 Calls

Alasdair McDiarmid, assistant general secretary at labor union the industry union, said the proposed changes represented "an existential threat" to UK steel.

Labor and business representatives called on the UK government to begin talks urgently with the EU on country-specific tariff exemptions, pointing out that the UK was now the European Union's No 1 export market.

Industry Background

Sector representatives in the EU have also been warning for several months that their own industry faces being "wiped out" through the new 50% tariffs on American market shipments combined with rising energy prices and cheap Chinese competition.

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

Adoption and Next Steps

The new measures must be agreed by EU nations and the EU legislature, with the EU executive head urging member states and MEPs to act fast in backing the initiative.

If the plan is ratified, the EU will cut its current duty-free quota by 47% to 18.3 million tons a year, a volume previously recorded in 2013. It will apply a 50% duty on imports beyond the quota and oblige nations exporting into the bloc to declare where the steel was melted and poured to prevent circumvention of the measures.

Exemptions and Global Partnerships

These European nations will not be subject to import limits or duties because of 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 US to protect their respective economies from excess production.

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