UK Government Unveils Steel Tariff Hike to Save Domestic Industry

The UK government has unveiled a new steel strategy aimed at saving its remaining plants from collapse. The plans involve doubling tariffs on Chinese and other foreign steel to 50% to protect domestic producers and boost production by 30%. This move is in line with recent measures taken by the US, EU, and Canada in response to a surplus of steel from China.

The new strategy, which was announced during a visit to Tata Steel in Port Talbot, aims to increase domestic production and reduce imports. A target of 50% of steel used in the UK will be made domestically, with 50% of that production coming from Wales.

The measures bring the UK in line with recent moves by the US, EU, and Canada in response to a surplus of steel from China. Chinese steel exports hit an all-time high in December, making it difficult for domestic producers to compete.

The current steel safeguards expire on 1 July, and the EU has also proposed doubling its tariffs to 50% and halving the quota with third countries in Europe, including the UK.

The UK government is expected to seek carve-outs with the EU featuring lower tariffs as they unite in the fight against cheaper Chinese steel.

The latest steel strategy is an attempt to protect what remains of the UK's steel industry after decades of contraction. The last Port Talbot blast furnace closed in 2024, after Tata was given a £500m rescue package to transition to electric arc furnaces, at a loss of 2,800 jobs.

Talks between ministers and executives from Indian-owned Tata Steel were described as 'positive and productive' by Alasdair McDiarmid, the assistant general secretary of the trade union Community.

The first minister of Wales, Eluned Morgan, called the new steel strategy 'good news for our steel communities and the thousands of people across Wales who work in or around the industry, now and in the future'.

The government's move has been welcomed by trade unions and industry leaders, who see it as a step in the right direction towards protecting the UK's steel industry.