UK to cut steel import quotas, raise tariffs to protect domestic industry

Britain will lower its tariff-free quota on imported steel and double the tariff on imports exceeding that quota, the government said on Thursday, launching a plan to protect its small but strategically and politically sensitive steel sector.



Steelmakers have struggled to survive in the birthplace of the Industrial Revolution after decades of decline driven by long-term de-industrialisation and, more recently, by high energy costs and a global glut of cheap steel.



The government will cut the amount of steel that can be imported without incurring tariffs by 60%. Imports above that new level will face a 50% tariff - twice the previous rate of 25%. The changes will come into force on July 1.



The move brings Britain's tariff rates into line with recent increases in the United States and proposals by the European Union, against a backdrop of heightened global trade tensions as U.S. President Donald Trump uses trade measures to further his "America First" agenda.



The British government also said that its National Wealth Fund would make up to 2.5 billion pounds ($3.33 billion) available to help finance investment in the sector and that it wanted 50% of steel used in Britain to be produced domestically, up from the current target of 30%.