UK to halve tariff-free steel imports to counter glut of cheap Chinese metal
Summary
The UK government will reduce the amount of steel that can be imported without tariffs by about half starting July 1. This action aims to protect the local steel industry from cheap steel coming mainly from China and follows similar moves by the EU.Key Facts
- The UK will cut tariff-free steel import quotas by 51% to 3.2 million tonnes.
- Tariffs on steel imported above these quotas will increase to 50% of the product's value.
- New rules replace pre-Brexit EU quota agreements, but the UK had kept the old rules after leaving the EU.
- Eleven types of steel used by UK manufacturers will be exempt from tariffs to avoid supply problems.
- The UK steel industry produces about 3 million tonnes yearly, compared to nearly 2 billion tonnes worldwide.
- The UK steel trade body says these measures are necessary to prevent the industry from collapsing.
- Steel users worry that quotas and tariffs could raise prices on many steel products that Britain cannot produce.
- Overcapacity in steel production is linked to subsidies in China and other countries, leading to excess steel being exported globally.
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