UK expected to ease steel tariffs after manufacturer cost warnings
10 reported2 unconfirmed
Ministers are expected to drop some planned tariffs on foreign steel after UK manufacturers warned the measures would significantly increase their costs. Representatives of the Department for Business and Trade are meeting leaders of steel trading business groups on Wednesday and Thursday to finalise details of a reprieve for certain industries. The government announced in March it was doubling tariffs on steel imports to 50% and reducing quotas by up to 60% to protect UK producers. The new tariffs and quotas must be in place by 1 July when current safeguards, negotiated while the UK was still part of the EU, expire. The UK is also fighting to mitigate similar quota reductions and tariff increases planned by the EU for that date, as both sides limit imports to protect against cheaper imports from China, Vietnam and elsewhere. The government already announced a three-month reprieve on import duties for steel buyers, and some say this could be extended to 12 months, while others say formal exemptions for specific sectors and companies are more likely. UK Steel said it submitted proposals to remove certain steel commodities from the tariff list to protect industries that cannot source those products domestically.
What’s reported
Ministers are expected to drop some planned tariffs on foreign steel after UK manufacturers warned of cost increases.
The government announced in March it was doubling steel import tariffs to 50% and reducing quotas by up to 60%.
The new tariffs and quotas must be in place by 1 July when current EU-negotiated safeguards expire.
The UK is also fighting to mitigate similar EU quota reductions and tariff increases planned for that date.
The government already announced a three-month reprieve on import duties for steel buyers; some say it could be extended to 12 months.
UK Steel said it submitted proposals to remove certain steel commodities from the tariff list for industries that cannot source those products domestically.
About 70% of UK steel is imported; the government aims to reduce that to 50%.
Gareth Stace, director general of UK Steel, said provisional safeguards were already increasing domestic supplies.
William Bain, head of trade policy at British Chambers of Commerce, said there was an unprecedented response from companies about the negative impact on costs.
Business secretary Peter Kyle raised with the EU the question of protecting British steel manufacturers from quota reductions.
Open questions
Whether the reprieve will be extended to 12 months or formal exemptions for specific sectors will be implemented.
The exact details of which steel commodities will be removed from the tariff list.
Key figures
Gareth Stace, director general of UK Steel
William Bain, head of trade policy at British Chambers of Commerce
Peter Kyle, business secretary
Sources: The Guardian
