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EU officials have announced they will adopt the United States' import duties on steel, effectively doubling levies on imports to fifty percent in a action described as "a critical danger" to the industry in the UK.

Unprecedented Crisis for UK Steel Industry

Given that eighty percent of British exports going to the EU, this change creates the British steel sector's most severe crisis, according to the lobby group representing the industry.

New EU Measures and Rules

In its plan presented to the EU legislature this week, the EU executive additionally suggested reducing the existing quota for tariff-exempt steel and obliging foreign suppliers to disclose where the steel was melted and poured to stop China sneaking products in through other countries.

EU steel sector was on the verge of collapse – these measures safeguard it so that investments can be made, reduce emissions, and regain competitiveness.

Overhaul 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 due to expire in 2026 and is now considered not fit for purpose. Inaction could have been "catastrophic" for the industry, one EU official said.

Industry Response and Concerns

However, Gareth Stace, from the trade association British Steel, said Brussels doubling its tariffs would pose "the most severe challenge the UK steel industry has ever faced".

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 still reeling from a 25% tariff imposed by the US earlier this year – from the risk of vast quantities of world steel diverted away from US and European markets.

This flood of imports "could be terminal for numerous steel companies.

Union and Government Pressure

Alasdair McDiarmid, representative at labor union Community, said the proposed changes represented "an existential threat" to British steel production.

Labor and business representatives urged the UK government to start negotiations urgently with the European Union on nation-specific duty-free quotas, 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 months that the European steel sector faces being "wiped out" through the new 50% tariffs on American market shipments combined with high energy costs 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 skyscraper structures, renewable energy equipment and transport infrastructure to dishwashers and kitchenware.

Adoption and Future Actions

The new measures require approval by member states and the European parliament, with the European Commission president urging member states and MEPs to act fast in backing the proposal.

If the plan is ratified, the European Union will cut its current duty-free quota by 47% to 18.3m tonnes a year, a level last seen in 2013. It will apply a 50% tariff on imports exceeding the limit and oblige countries exporting into the EU to state the production origin to avoid bypassing of the sanctions.

Exceptions and International Cooperation

These European nations will be exempt from tariff quotas or duties due to their strong economic ties in the European Economic Area, the European Union has confirmed.

Alongside the proposal, the European Union is pursuing a "steel partnership" with the US to protect their national industries from overcapacity.

EU must take immediate action, and decisively, prior to operations cease in large parts of the European steel sector and its value chains.