Key facts
- The UK government is considering easing planned steel tariffs.
- Manufacturers have warned that the tariffs would significantly increase their costs.
- The Department for Business and Trade is meeting with industry groups to discuss potential changes.
- Original restrictions, announced in March, aimed to double tariffs to 50% and reduce quotas by 60%.
- The new measures are set to take effect by July 1, replacing existing safeguards.
- The UK is also negotiating with the EU over similar tariff and quota changes.
The UK government is reportedly preparing to ease planned tariffs on steel imports following warnings from domestic manufacturers about the potential for significantly increased costs. Ministers from the Department for Business and Trade are scheduled to meet with leaders of steel trading business groups to finalize details of a reprieve for specific industries.
The government had announced in March an increase in tariffs on steel imports to 50% and a reduction in quotas by up to 60%, intended to protect UK producers. These new measures are slated to take effect by July 1, replacing existing safeguards that were negotiated while the UK was part of the EU.
Simultaneously, the UK is engaged in discussions with the EU to mitigate similar quota reductions and tariff increases planned by the bloc, as both entities seek to shield their domestic industries from cheaper imports. The British government had previously implemented a three-month transitional period for steel buyers, which some suggest could be extended.
Industry bodies like UK Steel have submitted proposals to remove certain steel commodities from the tariff list, particularly those not produced domestically or in sufficient quantities. They emphasize the need for a balance between protecting the steel sector and the broader manufacturing industry. Concerns have been raised by the British Chambers of Commerce regarding the serious negative impact of quotas and tariffs on construction, manufacturing, and engineering sectors.