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The European Union revealed they will adopt the United States' steel tariffs, effectively doubling taxes on imports to 50% in a action condemned as "an existential threat" to the industry in Britain.

Major Challenge for UK Steel Industry

Given that 80% of UK steel shipments destined for the EU, this change creates the UK steel industry's most severe challenge, as stated by the lobby group speaking for the sector.

European Commission Proposals and Regulations

In its plan presented to the European parliament this week, the EU executive additionally suggested reducing the current allowance for duty-free imports and obliging international producers to disclose where the steel was melted and poured to prevent China sneaking products in through third nations.

EU steel sector faced potential collapse – these measures safeguard it so that it can invest, decarbonise, and regain competitiveness.

Replacement of Existing System

These measures are designed to replace a import framework that has been in operation for the past seven years and which is set to expire in 2026 and is now considered outdated. To do nothing could have been "fatal" for the industry, one EU official stated.

Industry Reaction and Warnings

However, industry representatives, from the industry body British Steel, said Brussels doubling its tariffs would pose "the most severe challenge the UK steel industry has ever faced".

He called on the government to "acknowledge the urgent need to put in place its own measures to protect" the British steel sector – which is still reeling from a twenty-five percent duty from the US recently – from the risk of millions of tonnes of global steel diverted away from American and EU markets.

This flood of imports "could be fatal for many of our remaining steel companies.

Union and Political Calls

Alasdair McDiarmid, representative at steelworkers' union the industry union, stated the new measures represented "a survival risk" to British steel production.

Unions and industry leaders called on Keir Starmer to begin talks urgently with the European Union on country-specific tariff exemptions, pointing out that the United Kingdom was now the European Union's primary export market.

Broader Context

Industry leaders in the EU have repeatedly cautioned for months that the European steel sector confronts being "wiped out" through the increased duties on American market shipments combined with rising energy prices and low-cost Chinese imports.

Steel on both sides of the Channel is described as a essential sector, supplying basic materials in everything from skyscraper structures, renewable energy equipment and railways to dishwashers and kitchenware.

Implementation and Next Steps

The new measures must be agreed by EU nations and the EU legislature, with the European Commission president calling on national governments and European parliament members to act fast in backing the initiative.

Should approval be granted, the European Union will reduce its existing tariff-free allowance by forty-seven percent to 18.3m tonnes a year, a level 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 prevent circumvention of the sanctions.

Exemptions and International Cooperation

These European nations will be exempt from import limits or duties because of their strong economic ties in the European Economic Area, the EU has said.

Alongside the proposal, the EU is pursuing a "metals alliance" with the United States to protect their respective economies from overcapacity.

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