Back in March, the UK Government launched a Steel Strategy, with a decision on new import quotas and tariffs, which come into effect in just over three weeks from now, on 1st July 2026. You can read further details of the Strategy through the link:
The UK steel strategy (web version) – GOV.UK
The Steel Strategy will offer businesses a clear vision on the government’s aims for competitiveness and resilience for this essential manufacturing building block. It will also set out a route for future growth in sectors such as energy, manufacturing and construction, which will be underpinned by analysis of future UK steel needs and a modern production approach.
Implementing many of the Strategy’s recommendations will help to boost investor certainty and provide greater economic security through increased domestic production capacity.
On the flip side, the Strategy will effectively bring the curtain down on what has been an era of ever-lower world-wide tariffs on core manufacturing products like steel.
We recognise that trading nations across the world are faced with a dilemma of getting that fine balance between championing home grown production, whilst also keeping options open for low-cost imports.
The UK Steel Strategy proposals include a dramatic reduction on import quotas on key steel goods, with a reduction of tariff-free import quotas by 60% overall, significantly higher than the EU’s 47% reduction.
However, some categories of steel are facing cuts of up to 90%. Tariffs on imports above the quota limits are set to rise from 25% to 50%, creating a double hit for firms already grappling with high costs and fragile supply chains.
Whilst the UK Steel Strategy will aim to support steel production in the UK, manufacturers who depend on alternative imports will feel the pinch from the summer.
I’ve been in contact with some of our Chamber members who have expressed real concern about the implications of the UK Steel Strategy, with one member describing it as “a real own goal for UK manufacturing”.
Another member spoke of how his business had been unable to source a specific type of steel pipe from UK steel manufacturing and had no choice but to import the pipes from an overseas manufacturer.
Our British Chambers of Commerce colleagues have raised concerns directly with the Secretary of State and have called for a revision of the quotas in specific steel product categories and an extension of the easement applying to steel products imported under pre-existing contracts.
We echo this call and are now asking for local businesses to share their specific concerns about the impact of the UK Steel Strategy. Having anecdotal feedback from local companies can help to build the argument about the implications of what will happen in the future. If your business has any concerns or issues about the UK Steel Strategy, please send me an e-mail with further details:
declan.riddell@staffordshirechambers.co.uk
You are invited to join a Chamber Customs webinar,
‘UK Steel Strategy: What new quota limits mean for UK businesses’, which will take place on Thursday 11th June. For further details and how to book your place, please click the link:
https://us02web.zoom.us/webinar/register/WN_bTWNday8Q_CS-G4hcu6Flw
