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The European Union declared plans to adopt Donald Trump's import duties on steel, effectively doubling levies on imports to 50% in a action 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 poses the UK steel industry's most severe challenge, as stated by the industry association speaking for the sector.

New EU Measures and Regulations

Through its proposal submitted to the EU legislature on Tuesday, the European Commission additionally suggested cutting the current allowance for duty-free imports and obliging foreign suppliers to disclose the origin of steel production to prevent China diverting exports through other countries.

The European steel industry stood at the brink of failure – these measures safeguard it so that it can invest, reduce emissions, and regain competitiveness.

Replacement of Current Framework

The proposals are intended 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. Inaction could have been "catastrophic" for the sector, a European official said.

Industry Reaction and Warnings

However, industry representatives, from the industry body UK Steel, stated Brussels increasing duties would create "the most severe challenge the British steel sector has ever faced".

There were calls for the UK authorities to "acknowledge the critical necessity to implement domestic protections to defend" the UK steel industry – which is still reeling from a twenty-five percent duty imposed by Trump recently – from the risk of vast quantities of global steel redirected from American and EU markets.

This surge in foreign steel "could be fatal for many of our remaining steel companies.

Union and Political Calls

Alasdair McDiarmid, representative at labor union the industry union, stated the proposed changes represented "an existential threat" to UK steel.

Unions and industry leaders called on the UK government to start negotiations immediately with the EU on nation-specific tariff exemptions, pointing out that the United Kingdom was now the EU's primary trading partner.

Industry Background

Sector representatives in the EU have repeatedly cautioned for several months that their own industry faces being "wiped out" through the new 50% tariffs on exports to the US along with high energy costs and low-cost Chinese imports.

Steel 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 Future Actions

These proposals require approval by EU nations and the EU legislature, with the European Commission president calling on member states and MEPs to act fast in support of the initiative.

Should approval be granted, the European Union will cut its current duty-free quota by forty-seven percent to 18.3 million tons a annually, a volume previously recorded in 2013. It will impose a fifty percent tariff on imports exceeding the limit and require nations exporting into the EU to declare where the steel was melted and poured to avoid bypassing of the measures.

Exemptions and International Cooperation

These European nations will not be subject to import limits or duties because of their close trading relationship in the European Economic Area, the European Union has confirmed.

In addition to these measures, the EU 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 significant portions of the European steel sector and its value chains.