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The European Union declared they will adopt Donald Trump's steel tariffs, effectively doubling levies on foreign steel to fifty percent in a decision described as "an existential threat" to the sector in the UK.

Unprecedented Crisis for UK Steel Exports

With 80% of UK steel shipments destined for the EU, this policy shift poses the British steel sector's largest crisis, as stated by the lobby group representing the sector.

New EU Measures and Regulations

In its plan submitted to the European parliament this week, the European Commission also proposed reducing the current allowance for duty-free imports and obliging international producers to state where the steel was melted and poured to prevent Chinese producers diverting exports through other countries.

The European steel industry was on the verge of collapse – these measures safeguard it so that it can invest, reduce emissions, and regain competitiveness.

Overhaul of Current Framework

These measures are intended to supersede a import framework that has been functioning for the past seven years and which is set to expire in 2026 and is now seen as not fit for purpose. Inaction could have been "fatal" for the industry, a European official stated.

Sector Reaction and Concerns

However, Gareth Stace, from the industry body UK Steel, stated EU doubling its tariffs would pose "the most severe challenge the UK steel industry has encountered".

There were calls for the UK authorities to "acknowledge the critical necessity to put in place domestic protections to defend" the UK steel industry – which is still reeling from a 25% tariff from the US earlier this year – from the threat of vast quantities of global steel redirected from US and European markets.

This flood of imports "might prove fatal for numerous steel companies.

Labor and Political Calls

Union leaders, representative at labor union the industry union, stated the new measures posed "an existential threat" to UK steel.

Labor and business representatives called on Keir Starmer to begin talks urgently with the European Union on nation-specific duty-free quotas, noting that the United Kingdom was now the European Union's primary export market.

Industry Background

Industry leaders in the European Union have also been warning for months that their own industry faces being "wiped out" through the new 50% tariffs on exports to the US combined with rising energy prices and cheap Chinese competition.

Steel on both sides of the Channel is described as a essential sector, providing elemental components in products ranging from skyscraper structures, renewable energy equipment and transport infrastructure to dishwashers and kitchenware.

Implementation and Future Actions

These proposals require approval by member states and the EU legislature, with the EU executive head urging member states and MEPs to act fast in support of the initiative.

Should approval be granted, the EU will cut its existing tariff-free allowance by 47% to 18.3m tonnes a annually, a level previously recorded in 2013. It will impose a fifty percent duty on foreign steel beyond the quota and oblige countries exporting into the EU to declare where the steel was melted and poured to avoid bypassing of the measures.

Exceptions and International Cooperation

These European nations will not be subject to import limits or tariffs due to their close trading relationship in the EEA, the EU has confirmed.

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

EU needs to act now, and decisively, prior to all lights go out in large parts of the EU steel industry and its value chains.