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The European Union have announced they will adopt Donald Trump's import duties on steel, increasing to double taxes on foreign steel to fifty percent in a decision described as "an existential threat" to the industry in Britain.

Major Challenge for British Steel Industry

With eighty percent of British exports going to the EU, this policy shift creates the UK steel industry's biggest ever crisis, as stated by the lobby group speaking for the sector.

New EU Proposals and Regulations

Through its proposal presented to the EU legislature on Tuesday, the European Commission additionally suggested cutting the current allowance for duty-free imports and requiring foreign suppliers to state the origin of steel production to stop China diverting exports through third nations.

The European steel industry stood at the brink of failure – these measures safeguard it so that investments can be made, reduce emissions, and regain competitiveness.

Replacement of Existing System

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framework that has been in operation for the last seven years and which is due to expire in 2026 and is now seen as outdated.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

Industry Response and Concerns

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

He called on the government to "acknowledge the critical necessity to implement its own measures to protect" the UK steel industry – which is affected by a 25% duty imposed by the US recently – from the risk of millions of tonnes of world steel redirected from US and European markets.

This surge in foreign steel "might prove 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 UK steel.

Labor and business representatives urged the UK government to start negotiations urgently with the EU on country-specific tariff exemptions, pointing out that the UK was now the European Union's primary trading partner.

Industry Background

Industry leaders in the EU have also been warning for months that their own industry confronts being "eliminated" through the new 50% tariffs on American market shipments along with rising energy prices and low-cost Chinese imports.

Steel on both sides of the Channel is considered a essential sector, supplying elemental components in products ranging from building frameworks, wind turbines and railways to household appliances and kitchenware.

Adoption and Next Steps

The new measures must be agreed by EU nations and the European parliament, with the EU executive head urging member states and European parliament members to move quickly in backing the initiative.

If the plan is ratified, the European Union will cut its existing tariff-free allowance by 47% to 18.3m tonnes a annually, a level last seen in 2013. It will impose a fifty percent tariff on foreign steel beyond the quota and require countries exporting into the EU to declare the production origin to avoid bypassing of the measures.

Exceptions and Global Partnerships

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 EU is pursuing a "steel partnership" with the US to protect their respective economies from excess production.

EU must take immediate action, and firmly, before all lights go out in significant portions of the European steel sector and its value chains.