- Government reviewing new steel tariff regime ahead of July 1 deadline.
- Manufacturers warn higher import costs could push up prices and disrupt supply chains.
- Ministers considering exemptions for steel products not made in sufficient quantities in the UK.
Britain is considering changes to its planned steel import restrictions after manufacturers warned that tougher tariffs could increase costs and create supply problems across key industries.
The government is currently consulting businesses on its proposed steel tariff regime, which is due to take effect on July 1. The measures would reduce tariff-free import quotas and double tariffs to 50 per cent on steel imports that exceed those limits. The policy is intended to shield the UK steel industry from an influx of cheaper foreign steel, particularly from countries such as China and Vietnam.
However, pressure has been growing from steel users, including firms in construction, engineering and manufacturing, which argue that the proposed restrictions could leave them facing higher costs and limited access to materials.
A balancing act between protection and supply
Officials from the Department for Business and Trade have been meeting steel traders and industry representatives as they work towards finalising the scheme. Discussions have reportedly centred on whether certain steel products should be exempted from the new restrictions, particularly those that are either unavailable or not produced in sufficient quantities within the UK.
Industry sources have suggested that the government could expand exemptions for specific products rather than proceed with a blanket application of tariffs. Some businesses have also argued for an extension to the temporary transition period already announced by ministers.
Trade body UK Steel said it had submitted proposals aimed at protecting manufacturers that rely on imported steel while still supporting domestic producers. Around 70 per cent of steel used in Britain is imported, while the government's longer-term objective is to reduce that figure to around 50 per cent.
Gareth Stace, director general of UK Steel, reportedly said the organisation had worked closely with manufacturers to identify where adjustments may be needed. He added that the goal was to ensure steelmakers receive necessary protection while limiting disruption to the wider manufacturing sector.
The debate comes as Britain and the European Union both tighten safeguards to protect their steel industries from lower-cost imports. The UK's current steel protections, inherited from arrangements negotiated while it was part of the EU, expire on July 1.
Industry fears over rising costs
Business groups have argued that the planned restrictions risk creating financial and logistical challenges for companies that depend on imported steel.
William Bain, head of trade policy at the British Chambers of Commerce, reportedly said businesses across the country had raised serious concerns about the impact of tariffs and quotas on costs. He said those concerns had been communicated to ministers and industry was awaiting the government's final decision.
The government has maintained that the policy is designed to strike a balance between supporting domestic steel production and ensuring manufacturers can access the materials they need.
A spokesperson for the Department for Business and Trade said, as quoted in a news report, that the new trade measures aim to protect UK steelmakers while maintaining secure supply chains. The spokesperson added that ministers had always intended to gather industry feedback and review the effectiveness of the scheme after 12 months.
The issue also has an international dimension. British ministers are continuing discussions with Brussels over separate EU plans to tighten steel safeguards, which UK steel producers fear could significantly reduce their access to European markets.
While the final shape of Britain's steel regime remains under discussion, the latest consultations suggest ministers may be willing to soften parts of the proposal to ease pressure on manufacturers without abandoning support for domestic steel production.
