Jobs and kebabs on the line as UK steel sector turns on itself over import tariffs

"When Jonathan Reynolds announced sweeping tariffs this summer to shield Britain's steelmakers from a flood of cheap imports, the reaction seemed almost universally positive. "This government is unapologetic in our support for the UK steel sector," declared Reynolds, then business secretary, promising to defend a "vital industry that underpins Britain's industrial strength and national security." Gareth Stace, director-general of the industry body UK Steel, hailed it as "a tremendous outcome" that would stop foreign producers from "swamping the UK and driving our steel manufacturers out of business.""

"On one side stand the primary steel producers: heavyweights such as Tata Steel, British Steel, Celsa and Speciality Steel, which collectively employ about 10,000 workers and produce semi-finished materials like billets, slabs and blooms. They argue that protection is essential to defend British manufacturing from state-subsidised steel from Asia, particularly China."

The government imposed sweeping tariffs to protect domestic steelmakers from a surge of cheap imports. Initial public reactions were positive, framing protection as essential for industrial strength and national security. The measures have reopened a split between primary steel producers, who employ about 10,000 people and make semi-finished products, and downstream manufacturers, which support over 300,000 jobs by turning those products into finished goods. Primary producers argue tariffs counter state-subsidised imports from Asia, especially China. Downstream firms contend higher import costs undermine competitiveness and may render British manufacturing uneconomic, prompting accusations of self-interested behavior across the sector.

Read at Business Matters