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EU officials declared they will adopt Donald Trump's steel tariffs, effectively doubling taxes on foreign steel to fifty percent in a decision described as "a critical danger" to the sector in the UK.

Major Challenge for British Steel Industry

With eighty percent of UK steel shipments destined for the EU, this change represents the UK steel industry's most severe challenge, according to the lobby group representing the sector.

New EU Proposals and Rules

Through its proposal submitted to the EU legislature this week, the EU executive additionally suggested reducing the current allowance for tariff-exempt steel and obliging foreign suppliers to declare the origin of steel production to prevent China sneaking products in through third nations.

EU steel sector was on the verge of collapse – these measures safeguard it so that investments can be made, reduce emissions, and become competitive again.

Replacement of Current Framework

These measures are designed to supersede a import framework that has been in operation for the past seven years and which is due to expire in 2026 and is now seen as ineffective. To do nothing could have been "catastrophic" for the sector, one EU official stated.

Sector Response and Concerns

However, Gareth Stace, head of the industry body British Steel, stated EU doubling its tariffs would create "the biggest crisis the British steel sector has ever faced".

He called on the government to "acknowledge the critical necessity to implement domestic protections to protect" the UK steel industry – which is affected by a twenty-five percent tariff from the US earlier this year – from the threat of vast quantities of world steel redirected from US and European markets.

This flood of imports "could be terminal for numerous steel companies.

Labor and Government Pressure

Alasdair McDiarmid, assistant general secretary at labor union Community, stated the proposed changes posed "a survival risk" to UK steel.

Labor and business representatives called on the UK government to start negotiations immediately with the European Union on nation-specific tariff exemptions, noting that the UK was now the EU's No 1 export market.

Industry Background

Sector representatives in the EU have also been warning for months that their own industry faces being "eliminated" through the increased duties on exports to the US along with high energy costs and cheap Chinese competition.

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

Implementation and Future Actions

These proposals require approval 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 EU will reduce its current duty-free quota by 47% to 18.3m tonnes a year, a volume last seen in 2013. It will impose a fifty percent duty on foreign steel beyond the quota and require nations shipping to the EU to declare the production origin to avoid bypassing of the measures.

Exceptions and International Cooperation

Norway, Iceland, and Liechtenstein will not be subject to tariff quotas or tariffs because of their strong economic ties in the European Economic Area, the European Union has said.

Alongside the proposal, the European Union is seeking a "metals alliance" with the US to protect their national industries from overcapacity.

The European Union needs to act now, and decisively, before operations cease in large parts of the European steel sector and its supply networks.