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The European Union revealed plans to adopt Donald Trump's steel tariffs, increasing to double taxes on foreign steel to 50% in a move described as "a critical danger" to the industry in the UK.

Major Challenge for UK Steel Industry

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

European Commission Measures and Regulations

Through its proposal submitted to the European parliament this week, the EU executive additionally suggested slashing the existing quota for tariff-exempt steel and obliging international producers to disclose where the steel was melted and poured to stop Chinese producers diverting exports through other countries.

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

Replacement of Existing System

The proposals are designed to replace a quota system that has been in operation for the last seven years and which is set to expire in 2026 and is now seen as outdated. Inaction could have been "disastrous" for the sector, a European official said.

Industry Reaction and Concerns

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

There were calls for the government to "acknowledge the urgent need to put in place its own measures to protect" the UK steel industry – which is affected by a twenty-five percent duty imposed by the US recently – from the threat of millions of tonnes of world steel redirected from American and EU markets.

This surge in foreign steel "might prove fatal for many of our remaining steel companies.

Union and Government Pressure

Alasdair McDiarmid, representative at labor union the industry union, said the new measures represented "an existential threat" to UK steel.

Unions and industry leaders called on Keir Starmer to start negotiations urgently with the EU on country-specific tariff exemptions, pointing out that the UK was now the European Union's primary export market.

Broader Context

Industry leaders in the European Union have also been warning for months that their own industry faces being "wiped out" through the increased duties 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, providing basic materials in products ranging from building frameworks, wind turbines and transport infrastructure to dishwashers and cutlery.

Implementation 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.

If the plan is ratified, the EU will reduce its current duty-free quota by 47% to 18.3m tonnes a annually, a level last seen in 2013. It will impose a fifty percent duty on imports exceeding the limit and oblige countries shipping to the EU to state where the steel was melted and poured to prevent circumvention of the measures.

Exceptions and International Cooperation

These European nations will not be subject to tariff quotas or tariffs due to their strong economic ties in the EEA, the European Union has said.

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

The European Union must take immediate action, and firmly, prior to operations cease in significant portions of the EU steel industry and its supply networks.