Gotrade News - The UK government has decided to double the import tariffs on steel to 50% in an effort to save domestic factories from the threat of bankruptcy. This decision was announced by Business Secretary, Peter Kyle, during his visit to the Tata Steel plant in Port Talbot.
This move comes after warnings from Tata Steel's management regarding the potential closure of operations within two months if no rescue policy was implemented. Half of the steel used in the UK will be produced domestically, with half of that being generated by the plant in Wales.
Key Takeaways:
- This policy aims to boost domestic production by 30%.
- The UK is striving to curb unfair competition from cheap imported steel, especially from China.
- A new, more environmentally-friendly technology plant in Port Talbot is expected to be operational by 2028.
In addition to raising tariffs, imports of steel from abroad will be cut by up to 60% starting in July. Peter Kyle emphasized that these measures are crucial to creating a level playing field for UK steel producers facing competitive injustices.
The updated tariff policy is in line with similar steps taken by the US, EU, and Canada to combat China's steel oversupply. In the EU, increased tariffs and reduced quotas have also been proposed.
Tata Steel has begun the transition to more environmentally-friendly electric arc furnaces. Although energy costs and other issues continue to burden the sector, discussions with UK government officials show significant progress.
Alasdair McDiarmid from the Community labor union responded to this decision with optimism, highlighting the government's involvement as a positive step. This was echoed by Wales' First Minister, Eluned Morgan, who declared this strategy as good news for the steel community in the region.
Reference:
- The Guardian, UK to double steel tariffs to 50% to save plants from collapse. Accessed on March 19, 2026
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