Chris McDonald

“May I start by giving the apologies of the Minister for Trade, who is in Turkey, negotiating further trade deals for British industry? On 19 March, the Government set out the UK’s plan to introduce a robust new trade measure from 1 July. It will limit tariff-free steel imports, as compared with the steel safeguard measure. Any imports above the levels in the measure will face a 50% tariff. Protecting primary steel production is crucial to the UK’s critical national infrastructure and defence. That is why we have published a long-term plan for steel and are introducing a new trade measure countering the unprecedented and damaging effect of global overcapacity. It is simply wrong that only 30% of the steel that we need in the UK is made in the UK. Steel is essential for advanced manufacturing and engineering, and the interests of the domestic steel sector and downstream industry are best served together. A thriving steel industry strengthens supply chain resilience for downstream businesses and limits their exposure to global supply shocks. We need to balance the need to protect domestic steelmaking with maintaining secure, reliable supply chains for downstream businesses. Imports will remain important. The Government have engaged extensively with businesses across a range of sectors, including manufacturing, when developing this measure. Indeed, last week, I held a roundtable with downstream industry, together with my hon. Friend the Minister for Trade. We, and the Secretary of State, also heard from several colleagues about the concerns of businesses in their constituencies. We are listening carefully to companies throughout the supply chain as we finalise the measure. We have introduced a transitional arrangement; the new measure will not apply to goods under contract before 14 March 2026 and imported between 1 July and 30 September 2026. We have introduced a carry-over mechanism to give importers more flexibility. We will review the measure after 12 months to ensure that it remains fit for purpose. We are also engaging intensively with the European Commission on our respective steel measures, and are working to find a bilateral solution that protects vital UK-EU steel trade. This engagement reflects the unique structure of our trading and security relationships and the interconnectedness of our supply chains, but we need to be clear: if we do not act, we will not have steel-making in the UK. The US, Canada, the EU are all acting; we must too.”