UK to halve tariff-free steel imports to counter glut of cheap Chinese metal

The UK government will halve the amount of tariff-free steel imports allowed in an attempt to counter a global oversupply of cheap Chinese metal and boost its beleaguered local industry. New “safeguards” will be introduced on 1 July and will coincide with similar new limits being introduced by the EU for the same purposes. At the same time tariffs on steel imports above the duty-free quotas will be doubled to 50% of the product’s value. The quotas replace existing pre-Brexit rules that set import levels across the EU. The UK had retained the rules after leaving the bloc. Under the new rules, the existing quota of tariff-free steel allowed into the UK will be reduced by 51%, less than the 60% reduction proposed in March . That means only 3.2m tonnes can be imported duty-free into Britain in future. Business secretary Peter Kyle said: “This steel trade measure – including today’s finalised quota volumes – has been designed to both protect UK steel making from global overcapacity, while giving businesses across the supply chain the certainty they need. “We will continue to engage with industry and review the measure after 12 months.” The government will also exempt manufacturers using 11 specific types of steel from tariffs after pleas from industry that import duties would cripple them as no local alternative supply exists. …