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EU officials declared plans to adopt the United States' steel tariffs, increasing to double levies on foreign steel to fifty percent in a decision described as "a survival risk" to the industry in Britain.

Unprecedented Crisis for British Steel Exports

Given that eighty percent of UK steel shipments destined for the EU, this policy shift poses the UK steel industry's most severe crisis, as stated by the industry association speaking for the industry.

European Commission Measures and Rules

In its plan submitted to the European parliament this week, the EU executive additionally suggested slashing the existing quota for duty-free imports and obliging foreign suppliers to disclose the origin of steel production to stop China sneaking products in through other countries.

The European steel industry faced potential collapse – these measures safeguard it so that it can invest, reduce emissions, and regain competitiveness.

Overhaul of Existing System

The proposals are intended to replace a import framework that has been functioning for the last seven years and which is set to expire in 2026 and is now considered ineffective. To do nothing could have been "fatal" for the sector, one EU official said.

Industry Reaction and Warnings

Nevertheless, industry representatives, from the industry body UK Steel, stated EU doubling its tariffs would create "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 its own measures to defend" the UK steel industry – which is affected by a twenty-five percent tariff imposed by the US earlier this year – from the threat of millions of tonnes of global steel redirected from American and EU markets.

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

Labor and Government Calls

Union leaders, assistant general secretary at labor union Community, said the new measures represented "a survival risk" to UK steel.

Labor and business representatives called on Keir Starmer to start negotiations urgently with the European Union on country-specific duty-free quotas, noting that the UK was now the European Union's No 1 trading partner.

Industry Background

Industry leaders in the European Union have also been warning for several months that their own industry confronts being "wiped out" through the increased duties on exports to the US along with high energy costs and cheap Chinese competition.

The steel industry on both sides of the Channel is described as a essential sector, providing elemental components in products ranging from building frameworks, renewable energy equipment and transport infrastructure to household appliances and cutlery.

Adoption and Future Actions

The new measures require approval by EU nations and the European parliament, with the EU executive head calling on national governments and European parliament members to move quickly in backing the proposal.

If the plan is ratified, the European Union will cut its current duty-free quota by 47% to 18.3 million tons a annually, a level previously recorded in 2013. It will impose a 50% tariff on imports beyond the quota and oblige countries exporting into the EU to state where the steel was melted and poured to avoid bypassing of the sanctions.

Exceptions and Global Partnerships

Norway, Iceland, and Liechtenstein will not be subject to tariff quotas or duties due to their strong economic ties in the EEA, the European Union has confirmed.

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

The European Union needs to act now, and firmly, prior to operations cease in large parts of the EU steel industry and its value chains.