New UK steel tariffs come into force - but industry isn't happy

UK steel tariffs that come into force today have been criticised by industry as both too lenient and too restrictive, with claims of higher costs and possible job losses as a result.

From Wednesday 1 July, a range of imported steel products are subject to quotas, with some products being subject to taxes, making them more expensive.

It represents the first a tariff, a tax on imports, has been imposed since the UK left the European Union and comes as the US and EU have applied similar levies.

Some think the tariffs will mean they cannot import enough of the steel they need before incurring additional costs, as UK producers cannot meet national demand.

The Confederation of British Metalforming (CBM) - representing 200 companies employing more than 75,000 people - said domestic production lacks the capacity or capability to produce all the grades of steel that UK businesses require.

"Everyone connected with the sector believes there will be a shortfall," said CBM president Steve Morley.

"Nuances of some grades of steel mean that they aren't available domestically, so companies then have to source overseas to meet their production requirements," he added.

Meanwhile, the UK's largest producer, Tata Steel, which owns Port Talbot steelworks in Wales, believes steel producers are not sufficiently protected from international competition by the policy.

The quota levels do not reflect UK market conditions or pressures facing the steel industry, Tata Steel UK's chief executive Rajesh Nair said.

"In several categories, the quota volumes continue to allow significant import penetration into strategically important UK steel markets, exposing domestic production and supply chains to continued pressure."

Both Tata Steel and the CBM say the policy raised concerns about the outlook of the UK steel sector.

The CBM highlighted a risk of potential job losses and production moving overseas due to increased costs.

The British Chambers of Commerce (BCC), however, said tariffs were "a welcome tilt towards the needs of the UK's downstream steel users".

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What actually happens today?

The UK agreed reciprocal tariff-free quotas with the EU, while steel imports above agreed ​quotas will face an increased 50% tariff, up from 25% under the previous regime.

There is also a reduction in the imports allowed under tariff-free quotas, which have been cut by 51%.

The EU has also today brought in an updated steel tariffs regime, implementing a previously announced 50% tariff on almost half its steel imports, hitting countries with which it has free trade agreements.

(c) Sky News 2026: New UK steel tariffs come into force - but industry isn't happy