Wales First Minister Eluned Morgan has called on the UK government to take immediate policy action to safeguard the country’s steel industry following discussions with UK Prime Minister Keir Starmer.
Morgan stressed that steel remains a foundation industry underpinning construction, infrastructure, manufacturing, transport, utilities and consumer goods production. With Wales hosting a significant share of the UK’s steelmaking capacity, she noted that strong national policy backing is essential as the sector undergoes structural transformation, including Tata Steel’s transition toward electric arc furnace production and ongoing developments at the 7 Steel facility.
Trade uncertainty and energy costs remain key concerns
According to the Welsh government, the UK steel sector continues to face mounting pressure from high electricity prices, persistent global overcapacity and expanding trade barriers.
Officials warned that uncertainty surrounding international trade policies, particularly potential EU trade measure changes, poses significant risks given the EU’s position as the UK steel industry’s largest trading partner.
Wales has therefore urged London to protect existing UK-EU steel trading arrangements during the transition toward net-zero steel production.
Safeguards and US market access in focus
The Welsh authorities have also emphasized the need for robust replacement measures once current UK steel safeguard protections expire in June 2026. Without renewed protections, the sector could become increasingly exposed to dumped imports while competing economies continue applying defensive trade instruments.
At the same time, the government reiterated calls for tariff-free quota access for UK steel exports to the US under the UK-US economic prosperity agreement, noting that remaining US tariffs continue to weigh on exporters despite the strategic importance of the US market.
UK Steel Strategy expected to provide policy clarity
Beyond trade measures, industry stakeholders are seeking competitive electricity pricing, stronger domestic steel procurement rules for public projects, effective trade remedies and policies aimed at preventing carbon leakage.
The Welsh government is contributing to the development of the forthcoming UK Steel Strategy through participation in the UK Steel Council alongside companies, unions and industry representatives. The strategy, expected to be published in March, is viewed as crucial for addressing structural challenges, supporting decarbonization investments and providing long-term certainty for steel producers and workers.