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The European Union revealed plans to adopt the United States' steel tariffs, effectively doubling levies on imports to fifty percent in a decision described as "an existential threat" to the industry in the UK.

Major Challenge for British Steel Industry

Given that eighty percent of British exports going to the EU, this change creates the UK steel industry's largest challenge, according to the industry association representing the industry.

New EU Proposals and Regulations

In its plan submitted to the EU legislature this week, the EU executive additionally suggested reducing the current allowance for tariff-exempt steel and requiring international producers to disclose the origin of steel production to prevent Chinese producers sneaking products in through third nations.

EU steel sector was on the verge of collapse – these measures safeguard it so that investments can be made, decarbonise, and regain competitiveness.

Overhaul of Existing System

The proposals are designed to replace a quota system that has been functioning for the last seven years and which is set to expire in 2026 and is now seen as ineffective. Inaction could have been "catastrophic" for the industry, one EU official said.

Industry Reaction and Concerns

However, industry representatives, from the industry body British Steel, stated Brussels increasing duties would create "the most severe challenge the British steel sector has encountered".

He called on the government to "acknowledge the critical necessity to put in place its own measures to protect" the British steel sector – which is affected by a twenty-five percent tariff imposed by the US recently – from the risk of vast quantities of global steel redirected from US and European markets.

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

Labor and Government Pressure

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

Labor and business representatives called on Keir Starmer to begin talks immediately with the EU on nation-specific duty-free quotas, noting that the United Kingdom was now the EU's No 1 trading partner.

Broader Context

Sector representatives in the EU have repeatedly cautioned for months that their own industry confronts being "wiped out" through the increased duties on exports to the US combined with rising energy prices and cheap Chinese competition.

The steel industry on in both the UK and EU is considered a essential sector, providing basic materials in everything from building frameworks, renewable energy equipment and railways to household appliances and kitchenware.

Implementation and Future Actions

These proposals must be agreed by EU nations and the European parliament, with the European Commission president urging national governments and MEPs to move quickly in backing the initiative.

If the plan is ratified, the EU will reduce its existing tariff-free allowance by 47% to 18.3m tonnes a annually, a volume last seen in 2013. It will apply a 50% tariff on imports beyond the quota and require countries shipping to the bloc to declare the production origin to prevent circumvention of the sanctions.

Exceptions and International Cooperation

These European nations will be exempt from tariff quotas or tariffs due to their close trading relationship in the European Economic Area, the EU has said.

In addition to these measures, the EU is pursuing a "metals alliance" with the United States to ringfence their national industries from excess production.

The European Union must take immediate action, and firmly, prior to all lights go out in large parts of the European steel sector and its value chains.