British officials have told both U.K. steel producers and downstream importers, who use steel in everything from construction to automotive manufacturing, to expect a 50 percent duty outside of new quotas in a move “likely to be similar to the EU,” said a second industry figure.
Both industry figures were granted anonymity as they were not authorized to speak publicly.
Last October, the EU announced plans to reduce its quotas on foreign steel imports by almost half and levy a 50 percent tariff on goods exceeding the cap. The move is part of an overhaul of so-called safeguard protections that expire in both the EU and U.K., under World Trade Organization rules, at the end of June.
The U.K.’s strategy setting out the future of the sector has been repeatedly delayed. On Thursday, Kyle will set out a new scheme of trade protections to replace the so-called steel safeguards scheme.
A Tata Steel UK executive told lawmakers in early February that the government “had eight weeks to save the British steel industry” by shielding it with new protectionist measures from a glut of cheap imports from countries like China.
Steel importers, however, are unlikely to get the full gamut of exemptions under the scheme they had hoped for, said the second industry figure, noting they’re “prepared for the worst.” The government will “jeopardize downstream manufacturers if they make the import restrictions too prohibitive,” they said.
“There will be some exemptions, but not as many as they hoped for,” said the senior business representative.
“This government has been crystal clear in committing to a bright and sustainable future for steelmaking and steel jobs in the U.K., and we will publish a steel strategy shortly setting out how we can achieve a sustainable future for the sector,” said a government spokesperson.