Thousands of British jobs are at risk due to new UK steel tariffs introduced by the Labour Government, industry leaders warn. From this month, the tariff-free quota level for steel importers is being lowered by 51% compared to current arrangements, while import taxes on steel entering the UK above those levels double from 25% to 50%. The move aims to increase the proportion of UK-made steel from 30% to 50%, but MPs and industry bodies caution it could cost thousands of jobs without exemptions for specialist steel only produced abroad.
Aerospace and Defence Leaders Sound Alarm
Aerospace and defence industry leaders have warned that the measures may force them to purchase parts from other countries to avoid the higher costs imposed by the tariffs. Ministers insist the tariffs will only apply to steel grades produced in Britain, but industry leaders say specialist steels and alloys used in aerospace and defence have been mistakenly caught in the net.
The aerospace and defence trade body ADS told The Times that some speciality steel grades cannot currently be manufactured in the UK. ADS added: “The risk at the moment is that suppliers will just create a fully fabricated product abroad that's not tariffed and we will end up jeopardising the aerospace supply chain in the UK.” ADS also noted there was insufficient consultation on the tariffs, describing it as “too little, too late”.
Political Reactions and Government Defence
Shadow Business Secretary Andrew Griffith warned in June that the 50% tariff rate “will do great damage to British manufacturing, to housebuilders and those who construct the nation’s infrastructure”. Speaking in Parliament, he acknowledged “concessions” made by the Government but expressed ongoing concern over steel import codes used by aerospace and space sectors, arguing defence firms would face higher costs.
Trade Minister Sir Chris Bryant defended the measures, telling MPs: “Canada, the United States, and the European Union have already put in place similar toughened measures to protect their industries. So if we do nothing, or if we delay introducing new measures, we will immediately become the global dumping ground for cheap steel across the world. Again, I say that would mean the end of UK steel production.”
Sir Chris added: “The total quota volume will now be 3.2 million metric tonnes, that is an increase of over 560,000 metric tonnes of steel that can be imported tariff-free compared to the provisional volumes we announced, a significant 21% uplift. Having listened to members and to industry, we have increased the quotas in several instances, so as more accurately to protect categories of steel that are manufactured in the UK. Some of the changes reflect the fact that the European Union remains our largest export market for steel and we have highly interconnected supply chains.”
