UK Doubles Steel Tariffs to 50% to Protect Domestic Plants

Published: 19 March 2026. The English Chronicle Desk. The English Chronicle Online.

The United Kingdom is set to double tariffs on Chinese and foreign steel to protect domestic production. This measure aims to prevent the collapse of remaining UK steel plants amid global competition.

Business Secretary Peter Kyle announced that half of all steel used in the UK will now be domestically produced. Additionally, fifty percent of this production will come from Wales, safeguarding local jobs and industry infrastructure.

The new £2.5 billion strategy targets a thirty percent increase in domestic steel production. From July, import quotas for overseas steel will be cut by sixty percent, while duties on imports beyond these quotas rise to fifty percent.

Kyle described the measures as essential to counter “unfair competitive behaviour” abroad. He added that the strategy aligns with investments in green steel and ensures UK production meets global standards.

The UK’s move follows similar initiatives by the United States, European Union, and Canada to curb Chinese steel imports. China remains the world’s largest steel producer, with exports reaching record levels last December.

Current steel safeguards predate the UK’s EU exit and are set to expire on 1 July. Discussions between the EU and UK are expected to result in carve-outs allowing lower tariffs for bilateral trade while maintaining protection against cheap Chinese steel.

The policy aims to preserve the UK steel industry after decades of decline. The last blast furnace at Port Talbot closed in 2024 following a £500 million rescue for Tata Steel’s transition to electric arc furnaces, resulting in 2,800 job losses. Greener furnaces, melting scrap metal, are expected online by 2028.

Trade union officials, including Alasdair McDiarmid, described recent talks with ministers as productive. While energy prices remain a concern, progress on safeguarding UK steel plants is evident.

The First Minister of Wales, Eluned Morgan, welcomed the strategy, calling it “good news for steel communities and thousands of Welsh workers”.

This week’s developments follow a National Audit Office report warning that taxpayer costs for saving British Steel’s Scunthorpe plant could exceed £1.5 billion by 2028. Scunthorpe, now publicly controlled, remains the last plant producing virgin steel in the UK after threats of closure by its Chinese owner Jingye.

The government has not commented on the NAO figures but emphasised ongoing discussions about future operations at blast furnaces. Officials indicated that production will continue until companies transition to newer, more sustainable technologies.