economy
Steel bosses warn ‘back door’ loophole in UK trade rules could lead to job cuts and closures
New measures will protect Tata and British Steel but allow foreign pre-made parts into the UK, say industry bosses
TL;DR
- A loophole in new UK trade rules could allow pre-made foreign steel products to enter the UK tax-free.
- Industry bosses warn this could lead to job cuts and factory closures for British manufacturers.
- New measures doubled tariffs on raw steel imports to protect producers like Tata and British Steel.
- The loophole means fabricated steel parts, such as bridge sections and columns, will not be subject to the new tariffs.
- Downstream manufacturers, which support an estimated 300,000 jobs, could become uncompetitive.
- Rising energy costs due to the Iran war are already pressuring the downstream manufacturing sector.
- Ministers were warned about the loophole shortly after announcing the steel strategy.
- The government states the steel strategy protects UK producers and that measures will be reviewed after 12 months.