East Midlands Chamber has called on the region’s MPs to lobby ministers to take action against imminent changes to steel import tariffs, that the Chamber says could add significant cost and ‘run into millions’ for some importers.
From 1st July, tariff-free exemptions on imported steel are set to be reduced by 51% – revised from a level of 60% previously proposed in March – with any imported goods that exceed the quota charged a 50% tariff on the value. The Chamber has contacted MPs across the East Midlands and outlined specific actions to request from ministers.
Actions called for by the Chamber include:
- Prioritise reaching a deal with the EU, including negotiation of UK-specific quotas for certain product categories and recognition of UK–EU supply chain links across key manufacturing sectors
- Reduce the scale of proposed quota cuts, particularly the 90% reduction in category 1 and 35% reduction in category 7
- Extend the current easement on duties (currently for steel contracted by 14 March for delivery July – September) to support impacted businesses while negotiations are ongoing with the EU
- Publish a full impact assessment covering effects on both primary producers and downstream users
East Midlands Chamber Chief Executive Scott Knowles said: “Without action, the 1st July changes mean steel importers hit with huge costs, which, in some cases could run into millions, as our members have told us.
“We support home-produced British steel and safeguards to achieve this, but not at any cost. The reduction in quotas – particularly in categories 1 and 7 – will significantly increase the cost of importing steel products, our members have said. While I welcome the Government’s slight climb down from its first proposed 60% quota reduction to 51%, much more needs to be done.
“Unchanged further, the 51% quota reduction will lead to disruption of local and European supply chains, putting local jobs and investment at risk. 300,000 people are employed in sectors which rely upon imported steel products, often not made in the UK, to manufacture products here.
“We have had members tell us of cases where there is no choice other than to import – if a product cannot be sourced within the UK, is not made here, then they must bring it in from overseas.
“If action is not taken, there is a real risk of serious economic disruption to businesses that are reliant on imported steel products for their supply chains and that is why, on behalf of our members, we have contacted MPs across the East Midlands and urged them to lobby ministers for the changes we’ve outlined.”
View East Midlands Chamber’s letter to MPs here
