British officials have informed U.K. steel producers and importers to brace for a 50 percent duty on steel outside new quotas, akin to EU measures, according to an industry insider.
Anonymity was granted to the figures as they weren’t authorized to speak publicly.
In October, the EU announced a cut in foreign steel import quotas by nearly half, with a 50 percent tariff on excess goods. This revision of safeguard protections is set to expire under World Trade Organization rules by the end of June in both the EU and U.K.
The U.K.’s future sector strategy has faced repeated delays. On Thursday, Kyle plans to unveil a new trade protection scheme to replace the existing steel safeguards.
A Tata Steel UK executive warned lawmakers in February that the government had “eight weeks to save the British steel industry” with new protectionist measures against cheap imports, particularly from China.
Steel importers, however, may not receive all desired exemptions under the new scheme, with one industry figure saying they are “prepared for the worst.” Overly prohibitive import restrictions could “jeopardize downstream manufacturers,” they warned.
“There will be some exemptions, but not as many as they hoped for,” stated a senior business representative.
The government remains committed to a sustainable future for U.K. steelmaking and jobs, with a detailed strategy to be published soon, according to a spokesperson.
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