- Tariffs on imported steel to rise to 50 per cent from July.
- £2.5bn strategy aims to boost UK steel production by 30 per cent.
- Port Talbot and Scunthorpe remain central to industry survival.
The UK government is set to double tariffs on imported steel to 50 per cent, targeting cheaper supplies from China and other countries as part of a wider effort to protect domestic production.
The move forms part of a new £2.5bn steel strategy aimed at stabilising the sector, which has faced years of decline and mounting cost pressures. The changes will come into effect from July 1, when existing steel safeguards are due to expire.
Under the revised rules, import quotas for many overseas steel products will be cut by 60 per cent. Any imports beyond those limits will face the higher 50 per cent tariff, a sharp increase intended to curb what the government sees as unfair competition.
A tougher stance on cheap imports
The decision comes at a critical time for the UK steel industry. Tata Steel’s operations in Port Talbot have been under pressure, with company leaders recently warning that the site faced an uncertain future without further support.
Business secretary Peter Kyle reportedly said the new measures are designed to level the playing field for UK producers, pointing to global competition that has made it difficult for domestic steelmakers to compete on price.
He added that the strategy is expected to support the shift towards greener steel production while strengthening the overall competitiveness of the sector, as quoted in a news report.
The UK’s approach broadly mirrors similar moves by the US, EU and Canada, all of which have tightened trade protections in response to rising exports from China. Chinese steel shipments reached record levels in December, increasing pressure on global markets.
The UK and EU are also expected to explore arrangements that could soften tariffs between them, even as both sides take a firmer stance against low-cost imports from outside Europe.
Industry survival still in question
Despite the new protections, challenges remain. The UK steel industry has been shrinking for decades, and recent developments highlight how fragile the sector has become.
At Port Talbot, the last blast furnace closed in 2024 after Tata Steel secured a £500m government-backed transition to electric arc furnaces. The shift, aimed at producing greener steel, came with the loss of around 2,800 jobs. The new furnaces are expected to be operational by 2028.
Meanwhile, British Steel’s plant in Scunthorpe, the last facility producing virgin steel in the UK, remains under public control after the government stepped in last year. A report from the National Audit Office suggested the cost of supporting the site could exceed £1.5bn by 2028.
Kyle reportedly declined to comment directly on the report but said discussions are ongoing, adding that existing blast furnaces would continue operating until companies decide to transition.
Trade unions have cautiously welcomed recent discussions. Alasdair McDiarmid of the Community union reportedly described talks with ministers and Tata Steel as “positive and productive”, noting that progress is being made at Port Talbot.
The Welsh government has also signalled support, with first minister Eluned Morgan reportedly describing the strategy as good news for steel communities across the region.
Even so, energy costs, global competition and long-term investment needs continue to cast uncertainty over the sector. While higher tariffs may offer short-term relief, the longer-term future of UK steel still appears tied to how quickly it can adapt to changing market and environmental demands.
