The UK government has announced a new steel strategy that includes doubling tariffs on Chinese and other foreign steel to 50%, aiming to protect the domestic industry from collapse. Business Secretary Peter Kyle unveiled the measures during a visit to Tata Steel's Port Talbot plant in south Wales, where bosses had warned the government they had just two months to be saved.
The strategy sets a target for 50% of steel used in the UK to be produced domestically, with half of that coming from Wales. The £2.5bn plan aims to increase domestic production by 30%. From July, quotas on imports of many overseas steel products will be slashed by 60%, and duties outside those quotas will be raised to 50%.
Kyle described the measures as “a very strident set of protections for British production” to counter unfair competition. He said the strategy would align with investment in green steel transition and other areas to ensure domestic production matches global standards. The move brings the UK in line with recent actions by the US, EU and Canada in response to a surge in Chinese steel exports, which hit an all-time high in December.
The current steel safeguards expire on 1 July. The EU has also proposed doubling its tariffs to 50% and halving quotas with third countries, including the UK. Both sides are expected to seek carve-outs with each other featuring lower tariffs as they unite against cheaper Chinese steel.
The strategy aims to protect what remains of the UK's steel industry after decades of contraction. The last Port Talbot blast furnace closed in 2024 after Tata received a £500m rescue package to transition to electric arc furnaces, at a loss of 2,800 jobs. Work on the new greener furnaces has begun, with an expected online date of 2028.
Trade union Community's assistant general secretary, Alasdair McDiarmid, described talks in Port Talbot as “positive and productive”, noting that the government is following through on promises. First Minister of Wales, Eluned Morgan, called the strategy “good news for our steel communities”. The announcements come after a National Audit Office report estimated the taxpayer bill for saving British Steel's Scunthorpe plant could exceed £1.5bn by 2028, raising questions about long-term government support.
