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The UK government has introduced new measures aimed at increasing domestic steel production to account for half of the steel used across the country. As part of this initiative, taxes on imported steel will rise, with quotas on steel imports being significantly lowered. Any steel imported beyond the set quota will face a 50% tariff, according to the business department.
These changes have been met with approval from the UK steel industry, which has long sought protection from cheaper foreign steel. However, the Conservative party criticized the tariffs, labeling them as economic “red tape” that could hinder growth. Although the government has set a goal to produce up to 50% of the steel domestically, it has not specified a timeline for achieving this target. Starting in July, steel import quotas will be cut by 60%, yet further specifics on the quotas have not been disclosed.
The government is also exploring a transitional approach in which the 50% tariff might not apply to goods under contracts made before March 14 and imported between July and September. Business Secretary Peter Kyle announced the steel policies during a visit to Tata Steel’s Port Talbot plant in Wales, where an electric arc furnace is being constructed to produce steel by melting scrap metal. Kyle denied the tariffs were protectionist and argued the measures were necessary to prevent anti-competitive practices from overseas.
Despite assurances that steel imports will continue to flow to maintain supply and minimize economic disruption, opposition figures have voiced concerns. Shadow business secretary Andrew Griffith criticized the tariff hike, warning it would increase costs for the construction sector, reduce infrastructure investment, and harm UK manufacturers. The steel industry has faced significant challenges recently, including soaring energy costs, tariffs, and global overproduction. While recent steps have sought to alleviate some energy expenses, many UK steelmakers still face higher costs than their European and American competitors. The government remains heavily involved in supporting steel production facilities in Scunthorpe and Rotherham, where it is investing millions to keep operations running. Industry leaders emphasize that a clear and ambitious domestic steel strategy is critical for national security, energy transition, and infrastructure development. The GMB union welcomed the announcement but awaits further details, especially concerning the ownership of key steelworks and future technology plans
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