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The European Union declared they will adopt the United States' steel tariffs, effectively doubling levies on foreign steel to fifty percent in a decision condemned as "a survival risk" to the industry in the UK.

Unprecedented Crisis for British Steel Industry

Given that eighty percent of British exports destined for the European Union, this policy shift represents the British steel sector's largest crisis, according to the industry association representing the sector.

European Commission Measures and Regulations

In its plan submitted to the EU legislature this week, the EU executive additionally suggested slashing the existing quota for tariff-exempt steel and requiring foreign suppliers to declare where the steel was melted and poured to stop China diverting exports through other countries.

EU steel sector stood at the brink of failure – we are protecting it so that it can invest, decarbonise, and regain competitiveness.

Overhaul of Current Framework

The proposals are intended to replace a import framework that has been in operation for the past seven years and which is due to expire in 2026 and is now considered ineffective. Inaction could have been "fatal" for the sector, one EU official stated.

Industry Reaction and Warnings

However, industry representatives, head of the trade association UK Steel, stated Brussels doubling its tariffs would pose "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 its own measures to defend" the UK steel industry – which is still reeling from a 25% tariff imposed by the US recently – from the threat of vast quantities of global steel redirected from US and European markets.

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

Union and Government Pressure

Union leaders, assistant general secretary at steelworkers' union Community, stated the proposed changes posed "an existential threat" to British steel production.

Unions and industry leaders called on the UK government to start negotiations immediately with the EU on country-specific tariff exemptions, noting that the United Kingdom was now the EU's primary export market.

Broader Context

Industry leaders in the EU have repeatedly cautioned for several months that the European steel sector confronts being "wiped out" through the new 50% tariffs on American market shipments along with high energy costs and cheap Chinese competition.

The steel industry on both sides of the Channel is considered a essential sector, providing basic materials in everything from building frameworks, wind turbines and railways to dishwashers and cutlery.

Implementation and Next Steps

These proposals require approval by member states and the EU legislature, with the EU executive head calling on national governments and European parliament members to move quickly in backing the initiative.

If the plan is ratified, the European Union will cut its existing tariff-free allowance by 47% to 18.3m tonnes a annually, a level last seen in 2013. It will apply a fifty percent duty on imports exceeding the limit and require nations shipping to the EU to state where the steel was melted and poured to avoid bypassing of the measures.

Exceptions and Global Partnerships

Norway, Iceland, and Liechtenstein will be exempt from tariff quotas or tariffs due to their close trading relationship in the EEA, the EU has confirmed.

In addition to these measures, the European Union is seeking a "steel partnership" with the US to protect their national industries from excess production.

EU must take immediate action, and decisively, prior to all lights go out in significant portions of the EU steel industry and its value chains.