UK poised to ease steel tariffs as manufacturers warn of costs

UK ministers are expected to soften parts of their planned steel tariff regime after manufacturers, builders and trade bodies warned the measures could raise costs and create supply gaps before they take effect on July 1.

The Guardian reported on June 10 that officials are considering exemptions for some products, a longer transition period or a narrower application of the tariffs after industry pushback. The policy was announced in March as a move to double tariffs on steel imports to 50% and cut quotas by up to 60%.

Why the government is under pressure

The safeguards are due to replace the current system when it expires at the end of June. Ministers say the regime is meant to protect domestic steel production and jobs, including against cheap imports.

But downstream industries have argued that the plan is too broad. UK Steel said it had proposed removing certain steel commodities from the tariff list where those materials cannot be sourced in sufficient quantity, or at all, in Britain.

British Chambers of Commerce trade policy head William Bain said businesses across construction, manufacturing and engineering had warned of serious cost effects from the quotas and tariffs.

What construction groups warned

The Financial Times reported on June 8 that the Construction Leadership Council warned the measures could delay housing and infrastructure projects. It said domestic producers cannot meet all steel demand, leaving builders exposed to higher costs and possible shortages.

That warning sharpened the political pressure on ministers because the policy affects not just steelmakers, but also the wider supply chain that relies on imported steel grades and finished products.

What happens next

The government has already announced a three-month transition period for steel buyers, but the Guardian report said that period could be extended or replaced with targeted exemptions for specific sectors and companies.

The main question now is how wide any carve-outs would be before the July 1 start date. Officials are also managing separate EU steel safeguard changes that would reduce tariff-free quotas on the same day, adding another layer of risk for exporters.

The issue has become a balance between protecting domestic steel production and avoiding higher costs or delays for manufacturers, builders and other industries that say they cannot easily buy the steel they need in Britain.