The UK may consider easing new protective measures on steel – media reports

The UK is drawing up plans to amend its steel tariff regime, including extending exemptions to cover a wider range of steel products. This is according to Reuters, citing Sky News.

This comes amid warnings from industry groups that the new tariff measures could result in significant costs for businesses.

It is reported that the Department for Business and Trade will hold talks with industry groups this week regarding proposals to exempt a wider range of steel products from the restrictions announced in March. The department has not yet responded to the agency’s request for comment.

In particular, the UK construction industry warns that new steel tariffs will delay projects in the sector. According to the Financial Times, an internal memo from the Construction Leaders Council calls on the government to postpone the planned measures, as these changes could cause a significant shortage of key products for the sector. The risk is not limited to supply disruptions.

The briefing, recently sent to four UK government departments, states that the risk is not limited to supply disruptions; there are also concerns about higher prices.

Matthew Watkins, chief steel analyst at CRU Group, says the tariff structure could also create problems for sectors such as the automotive and white goods industries, which face both higher steel costs and competition from cheaper imported products. In his view, the new protective measures may support the margins of UK steel producers in the short term, but there is a risk of weakening consumer demand should prices rise sharply.

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