The UK plans to double tariffs on steel imports – Politico

The United Kingdom plans to double tariffs on steel imports as part of a broader strategy aimed at protecting the country’s steel industry, Politico reports, citing sources.

Trade Minister Peter Kyle is expected to announce the government’s steel strategy on March 19 at the Tata Steel UK plant in Port Talbot. Two sources familiar with the plans note that new protective measures for the British steel sector are being considered. This involves reducing import quotas for certain steel products while simultaneously raising tariffs on volumes exceeding the quotas to 50%. This move will bring the UK closer to the measures taken by the EU, the US, and Canada. Insiders added that there will be some exceptions for products not manufactured by British steelmakers.

The announcement of the UK’s strategy, which will shape the future of the country’s steel sector, has been repeatedly delayed. The new scheme is intended to replace the current system of steel safeguard measures.

In early February of this year, the head of Tata Steel UK told lawmakers that the government “has eight weeks to save the British steel industry” by protecting it with new protectionist measures against a flood of cheap imports from countries such as China.

At the same time, steel importers are unlikely to receive the full range of exemptions under the new scheme that they had hoped for, one source noted. In his view, the government will jeopardize manufacturers if import restrictions are too severe.

As a reminder, Welsh First Minister Eluned Morgan recently called on the British government to take urgent action to support the steel industry. She pointed out that Port Talbot’s transition to electric arc furnace production faces uncertainty regarding trade measures.

Morgan reported that she had pressed this issue during a meeting with Prime Minister Keir Starmer, describing the need for action as “urgent.” Currently, the country’s steel industry faces challenges such as high energy costs, global overcapacity, and rising trade barriers. The Welsh government has called for the publication of a steel strategy as a matter of urgency to provide clarity and certainty for workers and the industry.