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The European Union declared plans to adopt the United States' steel tariffs, effectively doubling levies on imports to fifty percent in a move described as "an existential threat" to the industry in Britain.

Major Challenge for UK Steel Exports

With 80% of British exports going to the European Union, this change represents the British steel sector's most severe challenge, according to the industry association representing the sector.

European Commission Proposals and Regulations

Through its proposal presented to the European parliament this week, the European Commission also proposed reducing the existing quota for tariff-exempt steel and requiring international producers to state the origin of steel production to stop China diverting exports through third nations.

The European steel industry faced potential collapse – we are protecting it so that it can invest, decarbonise, and regain competitiveness.

Replacement of Existing System

These measures are designed to supersede a quota system that has been functioning for the last seven years and which is due to expire in 2026 and is now seen as not fit for purpose. Inaction could have been "fatal" for the sector, one EU official said.

Industry Response and Concerns

However, industry representatives, from the industry body UK Steel, said EU doubling its tariffs would create "the biggest crisis the British steel sector has ever faced".

He called on the UK authorities to "recognise the critical necessity to put in place domestic protections to protect" the UK steel industry – which is still reeling from a 25% duty imposed by Trump recently – from the threat of vast quantities of global steel redirected from American and EU markets.

This surge in foreign steel "might prove terminal for many of our remaining steel companies.

Union and Political Calls

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

Labor and business representatives urged Keir Starmer to begin talks immediately with the EU on country-specific duty-free quotas, pointing out that the United Kingdom was now the EU's primary trading partner.

Broader Context

Sector representatives in the EU have repeatedly cautioned for several months that the European steel sector faces being "eliminated" through the increased duties on American market shipments combined with high energy costs and low-cost Chinese imports.

Steel on in both the UK and EU is described as a foundational industry, supplying basic materials in products ranging from skyscraper structures, renewable energy equipment and transport infrastructure to dishwashers and kitchenware.

Adoption and Future Actions

These proposals require approval by EU nations and the European parliament, with the EU executive head calling on member states and European parliament members to act fast in backing the proposal.

Should approval be granted, the European Union will reduce 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 foreign steel beyond the quota and oblige countries shipping to the EU to declare the production origin to avoid bypassing of the measures.

Exceptions and Global Partnerships

Norway, Iceland, and Liechtenstein will not be subject to tariff quotas or duties due to their strong economic ties in the EEA, the EU has said.

Alongside the proposal, the EU is seeking a "steel partnership" with the United States to protect their national industries from overcapacity.

EU must take immediate action, and decisively, before all lights go out in large parts of the EU steel industry and its value chains.