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The European Union declared they will adopt Donald Trump's import duties on steel, increasing to double taxes on foreign steel to 50% in a decision described as "a survival risk" to the industry in the UK.

Major Challenge for UK Steel Exports

With 80% of UK steel shipments destined for the European Union, this change creates the UK steel industry's largest crisis, according to the industry association representing the industry.

European Commission Measures and Regulations

Through its proposal submitted to the EU legislature this week, the EU executive also proposed cutting the existing quota for tariff-exempt steel and requiring international producers to disclose where the steel was melted and poured to prevent China diverting exports through other countries.

EU steel sector faced potential collapse – these measures safeguard it so that investments can be made, reduce emissions, and regain competitiveness.

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 considered not fit for purpose. Inaction could have been "disastrous" for the sector, a European official said.

Sector Reaction and Warnings

However, industry representatives, head of the trade association British Steel, said Brussels increasing duties would create "the most severe challenge the UK steel industry has ever faced".

There were calls for the government to "acknowledge the critical necessity to put in place its own measures to defend" the British steel sector – which is still reeling from a twenty-five percent duty imposed by Trump recently – from the risk of millions of tonnes of global steel diverted away from US and European markets.

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

Union and Government Pressure

Union leaders, representative at steelworkers' union the industry union, said the proposed changes represented "a survival risk" to British steel production.

Unions and industry leaders urged Keir Starmer to begin talks immediately with the European Union 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 repeatedly cautioned for several months that the European steel sector faces being "eliminated" through the new 50% tariffs on American market shipments along with high energy costs and cheap Chinese competition.

Steel on in both the UK and EU is considered a foundational industry, supplying basic materials in everything from building frameworks, renewable energy equipment and transport infrastructure to household appliances and kitchenware.

Implementation and Future Actions

These proposals must be agreed by EU nations and the EU legislature, with the European Commission president urging member states and European parliament members to move quickly in backing the initiative.

Should approval be granted, the European Union will reduce its current duty-free quota by forty-seven percent to 18.3m tonnes a year, a volume previously recorded in 2013. It will impose a 50% tariff on foreign steel beyond the quota and require countries exporting into the EU to state where the steel was melted and poured to avoid bypassing of the measures.

Exemptions and International Cooperation

These European nations will be exempt from tariff quotas or duties because of their close trading relationship in the EEA, the European Union has said.

In addition to these measures, the EU is pursuing a "metals alliance" with the US to protect their national industries from excess production.

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