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The European Union revealed they will adopt Donald Trump's import duties on steel, effectively doubling levies on imports to fifty percent in a action described as "an existential threat" to the sector in Britain.

Major Challenge for British Steel Industry

Given that 80% of British exports destined for the EU, this change poses the British steel sector's biggest ever challenge, according to the lobby group representing the sector.

European Commission Proposals and Regulations

Through its proposal submitted to the European parliament on Tuesday, the European Commission also proposed reducing the current allowance for duty-free imports and requiring international producers to declare the origin of steel production to stop Chinese producers sneaking products in through other countries.

EU steel sector stood at the brink of failure – we are protecting it so that investments can be made, reduce emissions, and become competitive again.

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 set to expire in 2026 and is now considered ineffective. Inaction could have been "fatal" for the sector, a European official stated.

Industry Reaction and Concerns

Nevertheless, Gareth Stace, from the trade association British Steel, said EU increasing duties would pose "the biggest crisis the UK steel industry has ever faced".

He called on the government to "acknowledge the urgent need to put in place domestic protections to protect" the British steel sector – which is still reeling from a 25% duty imposed by the US earlier this year – from the threat of millions of tonnes of world steel redirected from American and EU markets.

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

Labor and Government Calls

Alasdair McDiarmid, assistant general secretary at labor union Community, said the new measures posed "an existential threat" 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, pointing out that the United Kingdom was now the European Union's primary trading partner.

Industry Background

Sector representatives in the EU have also been warning for several months that their own industry faces being "eliminated" through the increased duties on American market shipments combined with rising energy prices and low-cost Chinese imports.

The steel industry on in both the UK and EU is considered a essential sector, supplying basic materials in everything from skyscraper structures, renewable energy equipment and transport infrastructure to dishwashers and kitchenware.

Implementation and Future Actions

The new measures require approval by member states and the EU legislature, with the European Commission president calling on member states and European parliament members to move quickly in support of the initiative.

If the plan is ratified, the EU will cut its current duty-free quota by forty-seven percent to 18.3m tonnes a annually, a volume previously recorded in 2013. It will apply a 50% tariff on imports beyond the quota and require nations shipping to the bloc to state the production origin to prevent circumvention of the sanctions.

Exemptions and Global Partnerships

These European nations will be exempt from import limits or duties due to their strong economic ties in the European Economic Area, the EU has confirmed.

In addition to these measures, the European Union is pursuing a "steel partnership" with the US to ringfence their national industries from overcapacity.

The European Union needs to act now, and decisively, before operations cease in significant portions of the European steel sector and its supply networks.