Thousands of British jobs are reportedly being put at risk by new UK steel tariffs. The Labour Government from this month is lowering the tariff-free quota level for steel importers by 51% compared to current arrangements.
It will also double import taxes on steel coming into the UK above those levels from 25% to 50%. The move is part of the Government’s aim to ensure 50% of the steel used in the UK is made in the country, up from 30%. But concerns have been raised by MPs that the move could cost thousands of jobs without exemptions for specialist steel which is only made abroad.
Aerospace and defence industry leaders have warned the measures may force them to buy parts from other countries to avoid costs pushed up by the Government tariffs. Ministers insist the tariffs will only apply to grades of steel produced in Britain. The industry leaders say specialist steels and alloys used in aerospace and defence have been mistakenly caught up in the tariffs.
Aerospace and defence trade body ADS told The Times some speciality steel grades cannot currently be made in the UK.
It 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 said there was not much consultation on tariffs and when it did come it was “too little, too late”.
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 welcomed “concessions” made by the Government, but said concern remains over some steel import codes used by aerospace and space, arguing defence firms would face higher costs.
Trade Minister Sir Chris Bryant told 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 3.2million 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.”