The UK government is considering making changes to planned steel import restrictions after warnings from manufacturers that the measures could increase costs, disrupt supply chains and undermine the competitiveness of processing industries, according to media reports.
Ministers are considering elements of a new steel trade regime, which is due to enter into force on July 1, after strong opposition from manufacturers and business groups.
Industry warns of higher costs
The proposed regime would reduce quotas for duty-free steel imports by about 60% and impose a 50% tariff on imports exceeding the quota limits.
Manufacturers claim that many of the steel products they rely on are not available from domestic suppliers, and have warned that these measures could lead to additional costs of millions of pounds.
Industry representatives also warned that stricter quotas could lead to increased supply shortages and force companies to look for alternative supply options outside the UK.
The government is studying possible adjustments
According to reports, the government is considering making adjustments to the quota system and transitional arrangements in response to concerns raised by the steel consumption sectors. Officials are said to be evaluating whether changes can be made to reduce the impact on processing industries while still protecting domestic steel producers.
A final decision has not yet been announced, and discussions between government officials and industry stakeholders are ongoing. The results of the government review are expected to be closely monitored by both steel producers and refiners, as these measures could have serious implications for supply chains and the industrial competitiveness of the entire UK economy.
UK Steel supports amendments to planned trade measures
The British Trade Association UK Steel expressed support for targeted amendments to the planned quota regime for steel imports in the UK. The Association stressed that the quota data published by the UK government in March was preliminary and that changes to the structure were always expected before the final measure took effect.
UK Steel presented to the Ministry of Business
