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The European Union declared they will adopt the United States' import duties on steel, effectively doubling taxes on foreign steel to fifty percent in a action condemned as "an existential threat" to the sector in Britain.

Unprecedented Crisis for UK Steel Industry

With 80% of UK steel shipments destined for the EU, this change creates the British steel sector's biggest ever challenge, according to the industry association representing the industry.

European Commission Measures and Regulations

Through its proposal presented to the EU legislature this week, the EU executive also proposed slashing the existing quota for tariff-exempt steel and requiring foreign suppliers to disclose where the steel was melted and poured to stop Chinese producers sneaking products in through third nations.

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

Replacement of Current Framework

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quota system that has been in operation for the last seven years and which is set to expire in 2026 and is now seen as outdated. To do nothing could have been "catastrophic" for the sector, a European official stated.

Sector Reaction and Concerns

However, Gareth Stace, from the trade association British Steel, stated EU doubling its tariffs would create "the biggest crisis the UK steel industry has encountered".

There were calls for the government to "acknowledge the critical necessity to implement its own measures to protect" the British steel sector – which is still reeling from a 25% tariff from the US recently – from the risk of millions of tonnes of world steel redirected from American and EU markets.

This surge in foreign steel "might prove fatal for numerous steel companies.

Labor and Political Calls

Union leaders, representative at steelworkers' union the industry union, stated the new measures posed "a survival risk" to British steel production.

Labor and business representatives called on the UK government to start negotiations urgently with the EU on nation-specific duty-free quotas, noting that the United Kingdom was now the European Union's No 1 export market.

Industry Background

Sector representatives in the EU have also been warning for several months that the European steel sector confronts being "wiped out" through the new 50% tariffs on American market shipments along 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 skyscraper structures, wind turbines and transport infrastructure to household appliances and cutlery.

Adoption and Future Actions

These proposals require approval by member states and the European parliament, with the European Commission president calling on member states and European parliament members to act fast in support of the initiative.

Should approval be granted, the European Union will cut its current duty-free quota by 47% to 18.3 million tons a annually, a volume previously recorded in 2013. It will impose a fifty percent tariff on foreign steel exceeding the limit and oblige countries exporting into the EU to declare the production origin to avoid bypassing of the sanctions.

Exceptions and International Cooperation

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 said.

Alongside the proposal, the EU is pursuing a "steel partnership" with the US to protect their respective economies from overcapacity.

The European Union must take immediate action, and firmly, before operations cease in significant portions of the European steel sector and its value chains.