Changes to UK trade policy will ‘jeopardise manufacturing’
Industry insider says new UK steel tariff measures risk devastating the steelwork sector.
The Managing Director of Tadweld, a Yorkshire-based steelwork manufacturer, says that recent changes to UK trade policy, including tariffs of up to 50% on imported raw steel and restricted quotas, were introduced to protect domestic steel producers. However, reporting highlights a potential critical loophole allowing pre-fabricated and finished steel products to enter the UK tariff-free, effectively bypassing these protections.
While the policy aims to support primary steelmakers, it could have the opposite effect on companies like Tadweld that rely on steel to manufacture finished products.
The company's Managing Director Chris Houston says overseas competitors would be able to produce and partially fabricate steel abroad before exporting it into the UK without tariffs and thus undercut UK manufacturers on price.
This will, he says, ‘make it almost impossible for UK steel fabricators to compete internationally.’
He continues, ‘This policy intends to provide support to the UK steel industry, but in fact it only helps the six companies who manufacture steel in the UK; Tata Steel UK, British Steel, 7 Steel, Marcegaglia, Specialty Steel UK and Sheffield Forgemasters, but it adds significant costs to the 1,200 steel fabrication businesses, and in turn the 400,000+ construction businesses who use steel every day.
'There isn’t much point having a competitive steel-producing sector if there aren’t any consumers left to buy it.’
Several key uncertainties remain with the announced policy, which is due to go live on the 1st July 2026.
There appears to be a transition period where the 50% tariff might not apply to goods under contracts agreed before 14 March 2026, and imported between July and September 2026.
There is also major concern from industry about a pre-fabricated loophole, where steel that had already had holes cut in it, or a small amount of welding, would be exempt from the tariffs.
