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Steel Tariffs
17 June 2026
Lead MP
Chris McDonald
Debate Type
Ministerial Statement
Tags
Business & Trade
Other Contributors: 43
At a Glance
Chris McDonald raised concerns about steel tariffs in the House of Commons. A government minister responded. Other MPs also contributed.
How the Debate Unfolded
MPs spoke in turn to share their views and ask questions. Here's what each person said:
Government Statement
The Minister for Trade announced a new trade measure to introduce a robust steel import tariff from July, aiming to protect UK's primary steel production and critical national infrastructure. The policy will impose a 50% tariff on any imports above the levels set in the safeguard measure. Only 30% of required steel is currently produced domestically, highlighting the need for this intervention. The measure will ensure supply chain resilience while maintaining secure import channels. A transitional arrangement has been introduced and will not apply to goods under contract before March 14th, 2026, until September 2026. Importers have flexibility through a carry-over mechanism. An annual review process is in place starting from the measure's introduction.
Andrew Griffith
Lab
Question
Asked about the retroactive application of tariffs, exempting specific steel categories not produced domestically, and requested a six-month delay for better policy design and industry impact assessment.
Minister reply
Acknowledged the shadow minister's concerns but emphasised that under WTO rules, an extension to the existing safeguard measure was impossible. The government consulted extensively with industry representatives to ensure quotas were targeted at steels producible in the UK.
Liam Byrne
Lab
Birmingham, Hodge Hill
Question
Expressed concern about a loophole for fabricated steel imports and requested immediate adjustments based on committee advice to safeguard the industry.
Minister reply
Acknowledged the Select Committee's concerns but noted that final policy announcement must await EU negotiations completion. The government is reviewing quota levels in response to feedback from industry.
Question
The steel sector is a vital UK industry. We must support it in the face of numerous challenges, including China’s unfair practices and Trump’s trade war, but I am extremely concerned about the impact on parts of the steel industry supply chain if these proposed tariff changes are implemented.
Minister reply
I thank the hon. Member for her constructive engagement on this issue with me over the past few weeks. The nub of her question is, I think, about domestic suppliers and the availability of domestic supply. As I said, the measures have been designed to cover those steel categories that are made or could be made in the UK.
Jessica Morden
Lab
Newport East
Question
As the Minister knows, I represent Llanwern, which produces galvanised steel. I repeat my ask to the Minister to be mindful of the impact of the scale of the allocations for non-EU countries on Llanwern. Will he continue to liaise directly with Tata and the unions on this issue?
Minister reply
I am particularly concerned about the allocations for galvanised steel, as my hon. Friend says, particularly given the country’s reliance on the ZODIAC galvanising line in Llanwern. That is a critical part of our steel and our national infrastructure.
Mike Wood
Con
Dudley South
Question
Engineering firms in Kingswinford and South Staffordshire are integral to automotive and aerospace supply chains, so how can it be right or in the national interest that they pay a tariff of 50% on the steel they import and use, while European producers making those parts with the same steel pay low or no tariffs?
Minister reply
I have just been alerted to the fact that I said the current measures will expire on 30 July. It is actually on 30 June. On the specific point raised by the hon. Gentleman, these measures are clearly designed to support primary steel production.
Question
We all support greater production here in the UK, but the details of these tariffs need more work. Black Country MPs, such as me and my hon. Friend the Member for West Bromwich (Sarah Coombes), have heard huge worries from our downstream industries.
Minister reply
I thank my hon. Friend for the strong work that she has done advocating for businesses in her area. Across the whole west midlands, there has been strong support from west midlands Members of Parliament for their businesses.
Julian Lewis
Con
New Forest East
Question
The Minister says that the concerns about fabricated steel are being taken into account. Can he be a bit more specific about why other countries have protections for fabricated steel in their economies, but we do not yet have any in ours?
Minister reply
I can give a specific example, if that would be helpful. A number of Members have mentioned the specific situation in Canada, for instance, and I have looked carefully at the situation there.
Question
May I add my voice to that of other Black Country Members? On behalf of Stourbridge, Brierley Hill and Netherton, I am grateful to the Minister and the Department for Business and Trade for their ongoing engagement with me and local businesses.
Minister reply
I thank my hon. Friend not just for her question, but for the invitation to visit Stourbridge and have this discussion with businesses in her constituency.
Question
I am greatly concerned by this issue. I spoke in the consideration of the steel Bill, and I raised the concerns of some of my businesses. The Minister rightly said that the measures expire on 30 June, but there is less than two weeks to go and huge amounts of uncertainty.
Minister reply
As I mentioned to my right hon. Friend the Member for Birmingham Hodge Hill and Solihull North (Liam Byrne), the Chair of the Select Committee, I am sympathetic about the uncertainty. It is a difficult position for businesses to be in.
Question
UK steel sector voices and Cabinet officials met to back procurement of British-made steel at Tata Steelpark in Wednesfield, rather than in offices in Whitehall, which I welcome. I also met Walsall Wheelbarrow, a family-owned business started by Fred Thacker in 1939.
Minister reply
The design of the steel measures, because of the different steel grades, means that the combined nomenclature codes fall into large buckets, so although the Government have targeted the measures at steels that are or could be made in the UK, some that are not or could not be made in the UK end up being caught up in the measures.
Adam Dance
Con
Yeovil
Question
From Yeovil’s cutting-edge defence manufacturers to Thorn Wood Forge, businesses in my constituency need steel that is currently not produced here. A 50% tariff would be disastrous. Will the Minister commit himself to exemptions for specialised steel grades that are not made in this country at the scale and spec needed by businesses in Yeovil?
Minister reply
The hon. Gentleman and I have engaged significantly on the industrial base in Yeovil, and I know how important it is to his local community. This takes us back to the point about steels that are or could be made in the UK. The issue raised involves the Speciality Steels plant. When we designed the trade measures, we were expecting a quick move into new ownership, but it has taken longer, causing concern for businesses. However, I am unapologetic about our determination to create market conditions so that speciality steels can be made in the UK.
Clive Betts
Lab
Sheffield South East
Question
It is right to defend the steelmaking sector but there are downside implications for smaller firms. Can he tell me how he will leave a channel open for concerns raised by companies if further measures do not address their particular grievances?
Minister reply
I am determined to continue engaging with Members on both sides of the House and businesses, trade associations and individual colleagues. We have had cross-party discussions and I have many meetings scheduled.
Thomas Tugendhat
Con
Tonbridge and Malling
Question
The real reason for the rise in steel problem is the energy price—the input price. Has the Minister had any challenging conversations with his colleague, and will he consider exemptions for the defence industry?
Minister reply
I care deeply about defence capability. We increased the supercharger rebate from 60% to 90%, and the British industrial competitiveness scheme will come into force next year but we are refunding this year as well.
Nia Griffith
Lab
Llanelli
Question
The imposition of tariffs on black-painted and zinc-painted steel banding products imported from the EU will increase costs for our steel producers and importers’ cash flow. Will the Minister look at those tariffs again?
Minister reply
This issue relates primarily to category 4 products which are very important in Llanwern. I am concerned about category 4, and it is one of the issues that I am looking at.
Question
Northern Ireland manufacturers rely on specialist grades including stainless steel box section, but additional tariffs will have an adverse effect. What consideration will the Government give to them?
Minister reply
The hon. Gentleman has highlighted exactly the issue with which we are dealing: the interaction between our own measures and market and the EU measures and market.
Stella Creasy
Lab
Walthamstow
Question
We would not be in this position if we had not left the European Union on the terms negotiated by the last Government. What lessons is the Minister taking from that, and from his conversations with colleagues?
Minister reply
I am a pragmatist. I am determined to do the best we can.
Question
The Minister has indicated that there may be a chance that some of the tariffs or categorisations will be changed. Will he undertake to come to the House and make a statement as soon as that is announced?
Minister reply
As soon as the measures are finalised, the Minister for Trade, my hon. Friend Chris Bryant, will want to report them to the House in the usual way.
Question
I hosted a meeting between officials and Hanson Springs representatives. My constituents urge him to ensure that nothing the Government do harms brilliant British businesses such as Hanson Springs?
Minister reply
The specific issue of 13 or 14-metre lengths of rod is a problem for him, but I can assure him that in all our negotiations with the EU, India, Turkey and the US, this Government are putting British industry first.
Question
The Minister says that the Government are listening to the concerns of businesses. Will the Minister meet businesses from Northern Ireland as a matter of urgency to discuss the devastating impact that this will have?
Minister reply
I shall be happy to meet businesses in Northern Ireland, as I have met businesses throughout the United Kingdom.
Question
This issue has raised a great many concerns. Hadley Industries and Pargat Housewares are already facing issues with tariffs on steel suitable for kitchenware which is not manufactured in the UK in significant quantities at competitive prices. What advice would the Minister give companies that are facing a 60% tariff?
Minister reply
If a particular kind of steel falls within a tariff area because it is grouped as part of trade measures, the quota is designed to resolve that. If there is a problem with setting the quota, I ask my hon. Friend to write to me or representatives could meet officials.
Question
On Monday my hon. Friend asked about the impact of new steel tariffs on the defence investment plan. What conversations have the Minister and his colleagues had with the Ministry of Defence?
Minister reply
I should be happy to meet the hon. Lady and representatives of businesses in her area. As the Minister for Industry, I am responsible for ensuring that we have adequate productive capacity to defend the nation.
Question
I thank the Minister for his personal engagement on this matter. As he knows, time is of the essence. Businesses are already telling me that they are cancelling orders, and that these quotas and tariffs create uncertainty. I cannot understand why we would put tariffs on our own British businesses when they cannot obtain the size and grade of steel that they need, and that includes non-speciality steel in categories 1 and 7. Will the Minister apply tariff exemptions when there is no ability to buy British?
Minister reply
There are issues with category 1, and I am looking at that. As I mentioned before, the uncertainty is unfortunate, but my hon. Friend will understand why it is there. I am aware that some businesses have been told by their stock holders that all their steels will be subject to a tariff, but that is not always the case. I can be generous and say that stock holders are perhaps also suffering some uncertainty and want to protect their own businesses, but I ask them to look very carefully at the codes. If they need some help with that, my officials stand ready to support them.
Question
Firms such as Hewland Engineering in Maidenhead face a 50% tariff on their specialist steel, but there is no approved British supplier to make the grades they need. That is not a steel strategy, but a tax on British manufacturing. I know the Minister understands their concerns, so will he go further and exempt categories for which there is no realistic British manufacturing or supply?
Minister reply
I can go further than understanding and offer some practical advice, if that is helpful. The first thing to check is whether the steels that the hon. Member mentions are made, or could be made, in the UK—the “could be made” is important. He is shaking his head, so I assume that they are not made in the UK but are caught in a category group simply because the groups are so broad, and they might represent a small part of that group. That is the purpose of the quota. If the hon. Member’s businesses feel that the quota is too small for their needs and for other businesses in the sector, they should urgently get in touch with me.
Question
Local manufacturers in Huddersfield have raised real concerns with me, particularly about the unintended consequences of this policy, the lack of a level playing field for raw materials and finished imports, and uncertainty around supply. Some are already seeing cost inflation in key steel outputs. Can the Minister please look at these matters again? Categories 14 and 27 have also been raised with me, and we must communicate better with our local companies.
Minister reply
My hon. Friend mentions categories 14 and 27, and perhaps her businesses could share their views with me. She says that we must communicate better. I am absolutely determined to communicate as much as possible, so if she gets her businesses to get in touch with me and my officials, we will take their representations into account.
Christchurch
Question
That is exactly what I did on behalf of my constituent Paul Kenchington: I wrote to the Secretary of State about the specialist steel that he uses, and I have not had a reply. Why can the Minister not say today that, until we are producing this steel ourselves, he will exempt from these tariffs all the steel that is not currently made in this country? It must be simple to do that.
Minister reply
If it was simple, we would do it. Of course, it is not that simple, because, as I have described, the category groupings for steels are much broader than individual grids. There are 20-odd categories, covering a whole range of grids, and that is why the quota size is particularly important. If there are issues with the quotas, we must deal with them. The hon. Gentleman says that he has not had a reply to his letter, for which I apologise on behalf of the Secretary of State. I can assure him that I will get my officials to look into that immediately.
Question
In my constituency, Xtreme Stainless builds exhaust systems and would always want to buy British steel. The company believes it is better made, and wants to back British jobs and manufacturing, but the owner is watching firms get around the tariffs by sending finished products to the UK, which undermines British manufacturers. Could the Minister please tell me what the Government are doing to close the gap so that the tariffs protect the whole supply chain, not just the first step of it?
Minister reply
The issue there is category 14, because we want to protect the stainless production that we have in the UK. I am not particularly familiar with exhaust systems manufacturing, but it largely uses flat stainless steel, which we do not make in the UK. As I mentioned, it is about making sure that we have a sufficient quota for that business, so that it does not need to pay the tariff. If my hon. Friend could share the information with me, I would be very grateful.
Question
May I ask about jobs? I appreciate that the Minister has answered a lot of questions about tariffs, but a lot of my constituents work in Trostre, which is in the constituency of the hon. Member for Llanelli (Dame Nia Griffith). We have talked a lot about the £2.5 billion steel fund. Nearly two years later, sites such as Trostre are still waiting, with no commitments, no timelines and no certainty on investment. No answers were found in the steel strategy, which was published in March. Can the Minister give me a straight answer on when Welsh steel sites will see investment from the steel fund?
Minister reply
I can indeed give a straight answer. Welsh steel sites will see money from the steel fund when the businesses that own them make a successful application for the money. Some £1 billion of the fund currently sits in the National Wealth Fund, awaiting such proposals. Tata Steel is particularly relevant to Trostre. I cannot say whether there is a project under consideration for Trostre, but I do know that Tata is bringing forward ideas. If the hon. Lady would like to talk to colleagues at Trostre and Tata Steel, they may well be able to share any ideas with her.
Question
I thank the Minister for recently meeting me to discuss my two brilliant downstream steelmaking companies in Monmouthshire, CMF and STAPPERT. Can I ask him to look at their cases again? If he is meeting my hon. Friend the Member for Newport East (Jessica Morden)—my constituency neighbour—at Llanwern, perhaps he could consult these two companies and hear exactly what their issues are.
Minister reply
I do not think I have a visit to Llanwern in the diary, but perhaps I will do soon enough. I am certainly happy to take another look at those cases. If there is an opportunity for my officials to have a discussion with the businesses, I would be very happy to set that up.
Question
I recently met Littlewood Fencing, a company in my constituency that makes specialist fencing for secure and sensitive locations, and it is facing crippling increases in costs. It might be noble to try to save jobs in the steel industry, but if jobs are lost in other parts of our economy, we are not really achieving anything. It is all about the rate of change that the Government are seeking to introduce. It is clear to many Members of this House that the rate of change currently proposed is not right. Will the Minister rethink and, if necessary, pause to ensure that we do not lose jobs in constituencies like mine in order to save jobs in other parts of the country?
Minister reply
The hon. Gentleman has put his finger on the issue that we are all grappling with: how we manage the transition. I recognise the importance of the business in his constituency producing secure fencing. There is a supply chain in the UK that could support that, leading from British Steel through the wire drawers, but he is right: it is about managing the transition. Unfortunately, we have a hard stop at the end of this month, and we need to put something in place beyond that and manage it over the course of the next few years.
Question
FMC and Dynamic Metals, both of which are in my constituency, have no alternative but to import specialist steel, because if it is not made in Britain, they cannot buy in Britain. What message does the Minister have for those businesses, and will he look at changing harmonised system codes so that customs can better distinguish between generic and specialist steels?
Minister reply
My hon. Friend puts her finger on a particular problem: the grouping together of various steels in the measures, which I recognise is an issue. As I have mentioned before, the quota is designed to solve the problem. I would appreciate it if she could share the issue with my officials; tonnage grade product specification is particularly helpful. It would be very helpful if she could share those details.
Question
Like other Members, I have met businesses in my constituency that will be severely impacted by what is being proposed in agriculture, and they do not want to put additional costs on farmers, who are already struggling. In one of his earlier answers, the Minister said that the overall strategy of trying to increase steel production is progressing more slowly than he would like—I think he said it has taken seven months. How long does he think these changes are going to be in place?
Minister reply
There are two things there. Our steel strategy said that we had an ambition to increase domestic steel production from 30% to 50% of market share. I have mentioned that the Speciality Steel sale has been delayed by a few months, but that component of the UK steel market is not the largest part. There are about 1 million tonnes of capacity there, whereas British Steel and Tata Steel each produce about 3 million tonnes. I realise that we are talking about different grades, but to answer the hon. Lady’s specific question: the overall capacity issue is very much about those two larger companies.
Question
I fully support the need to buy British, but companies such as Springmasters, KM Products and Accurate Laser Cutting Ltd—all of which are based in Redditch—cannot source the grade and size of steel required for their machines entirely from the UK; in fact, most comes from the EU. Will the Minister meet me and representatives of my local businesses to hear their suggestions about how we can protect local businesses but also meet the good intention of this Government to support British steel?
Minister reply
I am aware of the challenges for spring steel businesses. Spring steels are incredibly difficult to produce and use high-quality, high-value steel. They are clearly within the capability of Speciality Steel, but the business is not operating. Given the number of requests for meetings, we might do a roundtable or something similar, but there will certainly be an opportunity for my hon. Friend to speak to officials. Perhaps we can get together with the Minister for Trade.
Greg Smith
Con
Long Crendon
Question
Inquired about businesses relying on steel grades not produced in the UK and urged the Minister to pause before implementing tariffs due to potential job losses.
Minister reply
Emphasised that the policy is designed for steels made or could be made in the UK, rebutting claims of issues with quotas by citing a previous issue with subsidized Chinese steel. Suggested managing transition while not letting China set steel strategy.
Peter Prinsley
Lab
Question
Compared current government actions to the closure of Redcar works in 2015, highlighting support for the Steel Industry (Nationalisation) Bill.
Minister reply
Acknowledged emotional attachment and contrasted past Conservative approach with current proactive measures. Stressed months-long support compared to a previous conservative administration's limited timeframe.
Steffan Aquarone
Lib Dem
North Norfolk
Question
Asked about tariffs on raw materials versus finished products, citing North Norfolk businesses' concerns.
Minister reply
Acknowledged concern and highlighted the importance of discussions with the EU to manage such transitions.
Kit Malthouse
Con
North West Hampshire
Question
Pressed for immediate review of tariff impacts, emphasising potential market disruptions.
Minister reply
Reiterated 12-month review commitment but noted willingness to consider shorter reviews. Emphasised fairness and necessity in current global trading situation.
Maldon
Question
Inquired about grades of steel not produced domestically, impacting businesses such as C&M Precision Ltd.
Minister reply
Explained detailed assessment on steel grades and quotas, emphasising the need to get quota levels correct.
Jim Allister
TUV
North Antrim
Question
Asked about Northern Ireland's trade arrangements under EU tariffs, seeking assurance of UK governance.
Minister reply
Confirmed same trade arrangements for steel as other products. Offered to meet with businesses in Northern Ireland.
Alberto Costa
Con
South Leicestershire
Question
Asked about publishing detailed information on safeguard quota allocations before July 1st implementation.
Minister reply
Agreed to publish details as soon as available, contingent upon concurrent EU negotiations.
Ian Sollom
Con
Question
Highlighted concern of a manufacturer reliant on imported steel, questioning the rationale behind tax exemptions for fabricated products.
Minister reply
Acknowledged point and encouraged sharing detailed tonnage data to refine quota assessments.
James Wild
Con
Question
Pressed on 'could be made' steel, stressing urgency of grade specification and volume availability for manufacturers.
Minister reply
Addressed latent capacity in UK and emphasised need to correct market failures ensuring profitability and investment viability.
Jim Shannon
DUP
Strangford
Question
Inquired about Northern Ireland's steel access amidst GB competition, highlighting structural steel section challenges.
Minister reply
Reassured on concerns for Northern Ireland, emphasising consideration of Short Brothers' advocacy.
Shadow Comment
Andrew Griffith
Shadow Comment
The shadow minister criticised the government's proposed tariffs as harmful to aerospace, automotive, Formula 1, construction sectors, and manufacturing businesses employing 300,000 people. He cited concerns from industry leaders about the decline of UK's manufacturing base and potential job losses due to non-produced steel categories in defence applications. Griffith questioned whether exemptions for existing contracts and unproduced steels would be granted and suggested a six-month delay for further consultation.
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