UK to Finalise Limited Tariff Exemptions for Some Steel Imports While Doubling Duties and Cutting Quotas
The government is meeting steel trading groups this week to finalise exemptions from new 50% tariffs and quota cuts set to begin 1 July.
The Department for Business and Trade will meet leaders of steel trading business groups on Wednesday and Thursday to finalise tariff exemptions for certain industries that import steel not produced in sufficient quantities in the UK. The government announced in March that it would double tariffs on steel imports to 50% and cut quotas by up to 60% to protect domestic producers.
The measures must take effect by 1 July, when current safeguards negotiated while the UK was part of the EU expire.
The British government has already granted steel buyers a three-month reprieve on the new import duties. Some sectors have asked for that period to be extended to 12 months, while others expect the government to formalise permanent exemptions for specific commodities. UK Steel submitted comprehensive proposals to remove certain steel commodities from the tariff list.
A spokesperson for the group said other sectors had done likewise and that discussions with affected manufacturers were continuing. About 70% of the UK’s steel is imported. The safeguards are intended to reduce that share to 50%.
Gareth Stace, director general of UK Steel, said the provisional safeguards were already increasing domestic supplies. He said steelmakers were ramping up capacity and creating jobs, with further announcements of mothballed capacity returning to production expected soon.
William Bain, head of trade policy at the British Chambers of Commerce, said the organisation had received an unprecedented response from companies about the serious negative impact on costs for construction, manufacturing and engineering sectors.
Business Secretary Peter Kyle raised with the EU the question of protecting British steel manufacturers from quota reductions planned by the bloc. Speaking to reporters in Brussels last Friday, Kyle said some of the new safeguards were disruptive but that it remained important to protect domestic markets. The EU is also planning to reduce quotas and raise tariffs on steel imports from 1 July.
