British steel fabricators are calling for the new steel measures to be revised

New tariffs threaten to cost 30,000 jobs

The new quotas and import duties on steel introduced by the UK government to support domestic producers could backfire, according to Jonathan Clements, Chief Executive of the British Construction Steel Association (BCSA). This was reported by LBC.

From 1 July, the government is significantly reducing the volume of duty-free imports of certain types of steel products. Meanwhile, the duty on volumes exceeding the quota will rise from 25 per cent to 50 per cent. According to experts, this move will destabilise the market due to a number of critical factors:

1. A shortage of raw materials and rising costs. Many types of products subject to the new tariffs are not manufactured in sufficient quantities in the UK at all. Local companies are forced to purchase more expensive imported raw materials, which reduces their competitiveness.
2. A tax loophole. The tariffs apply only to unprocessed steel, whilst finished steel structures can be imported duty-free. This encourages contractors to commission the manufacture of structures abroad, which is already leading to annual imports of over 100,000 tonnes of finished products worth more than £500 million.
3. Failure to meet environmental requirements. Government projects require the use of low-carbon steel, which British companies are currently unable to supply in the necessary quantities.

According to BCSA estimates, unless this policy is revised, up to 30,000 jobs in the steel structures manufacturing sector will be at risk, and orders will be redirected en masse to foreign markets.

The association is calling on the government to urgently adjust its measures: to exempt scarce products from duties, to close the loophole for finished structures, and to adapt public procurement conditions to the actual capabilities of British steelworks.

As reported by GMK Center, the UK is drawing up plans to amend its tariff regime for steel, specifically to extend exemptions to a wider range of steel product categories. This process is taking place against a backdrop of warnings from industry groups that the new tariff measures could result in significant costs for businesses.

It should be noted that from 1 July this year, the volume of UK steel import quotas will be reduced by 60% compared with current agreements, whilst tariffs on imports exceeding the quota will rise from 25% to 50%. This move follows similar decisions by the EU, the US and Canada.