economy
UK to halve tariff-free steel imports to counter glut of cheap Chinese metal
Duty on imports outside new quota will double in move echoing similar changes in EU limits
TL;DR
- UK government to halve tariff-free steel imports by 51%, reducing the limit to 3.2 million tonnes annually.
- New 'safeguards' and doubled tariffs (to 50%) on imports exceeding quotas aim to protect the local steel industry from global oversupply, particularly from China.
- The EU will also implement similar limits, with UK and EU supply chains considered in negotiations.
- EU steel is expected to constitute a significant portion of the tariff-free imports.
- Manufacturers using 11 specific types of steel will be exempted from tariffs due to a lack of local alternatives.
- Some major steel producers, like Tata Steel UK, believe the quotas are still too high for certain steel categories, potentially allowing continued pressure on domestic production.
- The global steel supply currently exceeds demand by approximately 600 million tonnes, with China's faltering demand contributing to the oversupply.