The UK government is considering modifications to its planned steel import restrictions following warnings from manufacturers that measures could increase costs, disrupt supply chains and undermine the competitiveness of downstream industries, according to media reports.
The ministers are reviewing elements of the new steel trade regime due to take effect on July 1, after receiving strong opposition from manufacturers and business groups.
Industry warns of higher costs
The proposed regime would reduce tariff-free steel import quotas by around 60% and impose a 50 percent tariff on imports exceeding quota limits.
Manufacturers have argued that many of the steel products they rely on are not available from domestic suppliers and warned that the measures could add millions of pounds in additional costs.
Industry representatives have also cautioned that tighter quotas could create supply shortages and force companies to seek alternative sourcing options outside the UK.
Government examining possible adjustments
According to the reports, the government is considering adjustments to the quota system and transition arrangements in response to concerns raised by steel-consuming sectors. Officials are said to be evaluating whether changes can be made to reduce the impact on downstream industries while maintaining protection for domestic steel producers.
No final decision has yet been announced, and discussions between government officials and industry stakeholders remain ongoing. The outcome of the government's review is expected to be closely watched by both steel producers and downstream manufacturers, as the measures could have significant implications for supply chains and industrial competitiveness across the UK economy.
UK Steel backs amendments to planned trade measures
UK-based trade association UK Steel has expressed support for targeted amendments to the UK's planned steel import quota regime. The association emphasized that the quota figures published by the UK government in March were provisional and that modifications to the framework were always expected before the final measure enters into force.
UK Steel has made comprehensive proposals to the Department for Business and Trade to remove certain commodity codes, make amendments to quota sizes and utilize authorized use schemes that will allow certain sectors specific access to the steel they require. We understand other sectors have done likewise to inform the government’s final policy and we continue to have extensive discussions with impacted manufacturers.
The association noted that ongoing negotiations between the UK government and the European Commission regarding reciprocal access to steel import quotas could have a significant impact on the final structure of the regime.