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The European Union have announced plans to adopt the United States' steel tariffs, effectively doubling levies on foreign steel to fifty percent in a action condemned as "a critical danger" to the sector in Britain.

Major Challenge for UK Steel Industry

Given that eighty percent of UK steel shipments destined for the European Union, this change poses the British steel sector's biggest ever crisis, as stated by the lobby group speaking for the industry.

New EU Proposals and Regulations

Through its proposal submitted to the EU legislature this week, the European Commission additionally suggested reducing the current allowance for tariff-exempt steel and obliging international producers to state where the steel was melted and poured to prevent China sneaking products in through third nations.

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

Overhaul of Existing System

The proposals are designed to replace a quota system that has been functioning for the past seven years and which is due to expire in 2026 and is now considered ineffective. To do nothing could have been "catastrophic" for the industry, a European official stated.

Industry Reaction and Warnings

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

There were calls for the UK authorities to "recognise the critical necessity to implement domestic protections to protect" the British steel sector – which is still reeling from a 25% duty from the US recently – from the threat of millions of tonnes of world steel redirected from American and EU markets.

This surge in foreign steel "could be terminal for many of our remaining steel companies.

Labor and Political Pressure

Alasdair McDiarmid, assistant general secretary at steelworkers' union Community, said the new measures posed "a survival risk" to British steel production.

Labor and business representatives called on the UK government to start negotiations immediately with the European Union on nation-specific duty-free quotas, pointing out that the United Kingdom was now the EU's primary export market.

Broader Context

Sector representatives in the European Union have also been warning for months that the European steel sector confronts being "eliminated" through the new 50% tariffs on American market shipments combined with high energy costs and low-cost Chinese imports.

The steel industry on in both the UK and EU is described as a foundational industry, supplying basic materials in products ranging from building frameworks, 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 EU executive head urging member states and European parliament members to move quickly in backing the initiative.

If the plan is ratified, the EU will cut its existing tariff-free allowance by 47% to 18.3 million tons a year, a volume previously recorded in 2013. It will apply a 50% tariff on foreign steel beyond the quota and require nations shipping to the EU to state the production origin to avoid bypassing of the sanctions.

Exemptions and Global Partnerships

These European nations will not be subject to import limits or tariffs due to their strong economic ties in the European Economic Area, the EU has confirmed.

In addition to these measures, the European Union is seeking a "metals alliance" with the United States to ringfence their national industries from overcapacity.

The European Union must take immediate action, and firmly, prior to operations cease in large parts of the EU steel industry and its value chains.