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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 action condemned as "a critical danger" to the industry in the UK.

Major Challenge for British Steel Industry

Given that eighty percent of British exports destined for the EU, this change creates the UK steel industry's biggest ever crisis, according to the industry association representing the sector.

New EU Proposals and Rules

Through its proposal presented to the EU legislature on Tuesday, the European Commission additionally suggested reducing the existing quota for tariff-exempt steel and obliging foreign suppliers to declare where the steel was melted and poured to stop China diverting exports through other countries.

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

Overhaul of Current Framework

The proposals are intended to replace a quota system that has been functioning for the last seven years and which is set to expire in 2026 and is now considered outdated. Inaction could have been "disastrous" for the sector, a European official said.

Sector Reaction and Concerns

Nevertheless, industry representatives, from the industry body British Steel, stated Brussels increasing duties would pose "the most severe challenge the British steel sector has encountered".

He called on the government to "recognise the urgent need to put in place its own measures to defend" the British steel sector – which is affected by a 25% tariff from the US earlier this year – from the risk of vast quantities of world steel redirected from US and European markets.

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

Labor and Government Calls

Alasdair McDiarmid, representative at steelworkers' union the industry union, said the proposed changes posed "a survival risk" to British steel production.

Unions and industry leaders called on the UK government to begin talks immediately with the EU on country-specific duty-free quotas, noting that the UK was now the European Union's No 1 trading partner.

Industry Background

Sector representatives in the European Union have repeatedly cautioned for months that the European steel sector confronts being "wiped out" through the new 50% tariffs on American market shipments along with rising energy prices and cheap Chinese competition.

The steel industry on in both the UK and EU is considered a foundational industry, providing elemental components in products ranging from building frameworks, wind turbines and railways to dishwashers and cutlery.

Implementation and Next Steps

The new measures must be agreed by member states and the European parliament, with the European Commission president urging national governments and MEPs to act fast in backing the initiative.

Should approval be granted, the European Union will cut its existing tariff-free allowance by 47% to 18.3 million tons a annually, a level last seen in 2013. It will apply a 50% duty on imports exceeding the limit and require countries exporting into the EU to declare where the steel was melted and poured to prevent circumvention of the measures.

Exemptions and Global Partnerships

Norway, Iceland, and Liechtenstein will be exempt from import limits or tariffs because of their close trading relationship in the EEA, the European Union has confirmed.

Alongside the proposal, the EU is pursuing a "metals alliance" with the US to protect their respective economies from excess production.

The European Union needs to act now, and firmly, prior to all lights go out in large parts of the EU steel industry and its value chains.