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The European Union revealed they will adopt the United States' steel tariffs, increasing to double levies on foreign steel to fifty percent in a move described as "a critical danger" to the industry in the UK.

Unprecedented Crisis for British Steel Exports

Given that eighty percent of British exports destined for the EU, this change creates the British steel sector's largest challenge, according to the lobby group speaking for the sector.

New EU Proposals and Regulations

Through its proposal presented to the European parliament on Tuesday, the EU executive also proposed reducing the current allowance for duty-free imports and requiring foreign suppliers to state the origin of steel production to stop Chinese producers 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.

Replacement of Current Framework

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 ineffective. Inaction could have been "catastrophic" for the industry, one EU official said.

Sector Response and Warnings

However, industry representatives, head of the trade association British Steel, said EU doubling its tariffs would pose "the biggest crisis the British steel sector has encountered".

There were calls for the UK authorities to "recognise the urgent need to implement its own measures to protect" the British steel sector – which is still reeling from a 25% tariff imposed by Trump earlier this year – from the risk of vast quantities of world steel diverted away from US and European markets.

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

Union and Government Pressure

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

Unions and industry leaders urged Keir Starmer to start negotiations urgently with the European Union on nation-specific tariff exemptions, noting that the United Kingdom was now the European Union's No 1 trading partner.

Broader Context

Sector representatives in the EU have also been warning for months that their own industry faces being "eliminated" through the new 50% tariffs on exports to the US combined with rising energy prices 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.

Adoption and Future Actions

These proposals require approval by EU nations and the European parliament, with the EU executive head urging national governments and European parliament members to move quickly in support of the proposal.

If the plan is ratified, 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 imports exceeding the limit and oblige countries exporting into the EU to declare where the steel was melted and poured to avoid bypassing of the sanctions.

Exceptions and International Cooperation

Norway, Iceland, and Liechtenstein will not be subject to import limits or duties due to their close trading relationship in the European Economic Area, the EU has said.

Alongside the proposal, the European Union is pursuing a "metals alliance" with the United States to protect their national industries from overcapacity.

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