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The European Union revealed plans to adopt the United States' import duties on steel, effectively doubling taxes on foreign steel to fifty percent in a move condemned as "an existential threat" to the industry in Britain.

Unprecedented Crisis for UK Steel Industry

Given that eighty percent of British exports going to the European Union, this change represents the UK steel industry's most severe challenge, according to the industry association representing the industry.

New EU Proposals and Regulations

Through its proposal submitted to the European parliament on Tuesday, the EU executive also proposed reducing the existing quota for duty-free imports and obliging foreign suppliers to declare the origin of steel production to prevent China diverting exports through other countries.

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

These measures are intended to supersede a import framework that has been functioning for the last seven years and which is due to expire in 2026 and is now seen as not fit for purpose. To do nothing could have been "catastrophic" for the industry, a European official said.

Sector Reaction and Warnings

However, Gareth Stace, head of the trade association UK Steel, stated Brussels doubling its tariffs would pose "the most severe challenge the British steel sector has ever faced".

There were calls for the UK authorities to "recognise the urgent need to put in place domestic protections to protect" the UK steel industry – which is still reeling from a 25% duty from the US earlier this year – from the risk of vast quantities of global steel redirected from American and EU markets.

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

Labor and Political Calls

Alasdair McDiarmid, assistant general secretary at labor 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 EU on nation-specific tariff exemptions, noting that the United Kingdom 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 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.

Steel on both sides of the Channel is described as a essential sector, supplying basic materials in products ranging from skyscraper structures, wind turbines and railways to dishwashers and kitchenware.

Adoption and Future Actions

These proposals require approval by EU nations and the EU legislature, with the EU executive head urging member states and European parliament members to act fast in support of the initiative.

If the plan is ratified, the European Union will cut its existing tariff-free allowance by forty-seven percent to 18.3m tonnes a annually, a level last seen in 2013. It will apply a fifty percent tariff on imports beyond the quota and require countries exporting into the EU to declare where the steel was melted and poured to avoid bypassing of the measures.

Exceptions and International Cooperation

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

In addition to these measures, the European Union is seeking a "steel partnership" with the United States to protect their respective economies from overcapacity.

EU needs to act now, and decisively, before operations cease in large parts of the EU steel industry and its value chains.