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EU officials revealed plans to adopt Donald Trump's steel tariffs, increasing to double taxes on foreign steel to 50% in a move condemned as "an existential threat" to the industry in the UK.

Major Challenge for British Steel Exports

With eighty percent of British exports going to the European Union, this change poses the UK steel industry's largest crisis, as stated by the industry association representing the industry.

New EU Proposals and Regulations

In its plan presented to the European parliament on Tuesday, the European Commission additionally suggested cutting the current allowance for duty-free imports and obliging foreign suppliers to state the origin of steel production to stop China diverting exports through other countries.

EU steel sector faced potential collapse – we are protecting it so that investments can be made, reduce emissions, and regain competitiveness.

Replacement of Current Framework

The proposals are designed to supersede a import framework that has been functioning for the past seven years and which is due to expire in 2026 and is now considered outdated. Inaction could have been "disastrous" for the industry, one EU official said.

Sector Reaction and Warnings

However, industry representatives, from the industry body UK Steel, stated Brussels doubling its tariffs would create "the biggest crisis the British steel sector has encountered".

There were calls for the government to "acknowledge the critical necessity to put in place domestic protections to protect" the UK steel industry – which is affected by a twenty-five percent tariff imposed by Trump earlier this year – from the risk of vast quantities of world steel redirected from American and EU markets.

This flood of imports "could be terminal for many of our remaining steel companies.

Labor and Political Pressure

Union leaders, representative at labor union the industry union, stated the new measures posed "an existential threat" to UK steel.

Unions and industry leaders urged the UK government to begin talks urgently with the EU on country-specific duty-free quotas, noting that the UK was now the European Union's No 1 export market.

Industry Background

Industry leaders in the European Union have repeatedly cautioned for several months that their own industry confronts being "eliminated" through the new 50% tariffs on American market shipments along with high energy costs and cheap Chinese competition.

The steel industry on in both the UK and EU is considered a essential sector, providing elemental components in products ranging from building frameworks, renewable energy equipment and transport infrastructure to household appliances and kitchenware.

Adoption and Future Actions

These proposals must be agreed by member states and the EU legislature, with the EU executive head calling on national governments and MEPs to act fast in backing the initiative.

If the plan is ratified, the European Union will cut its current duty-free quota by 47% to 18.3 million tons a year, a level last seen in 2013. It will apply a fifty percent duty on imports exceeding the limit and require countries exporting into the EU to declare the production origin to avoid bypassing of the sanctions.

Exceptions and Global Partnerships

Norway, Iceland, and Liechtenstein will not be subject to import limits or duties because of their close trading relationship in the EEA, the EU has said.

Alongside the proposal, the European Union is seeking a "steel partnership" with the US to protect their national industries from overcapacity.

The European Union needs to act now, and firmly, before all lights go out in large parts of the European steel sector and its value chains.