Government admits steel tariffs could push smaller firms out of business
From July 1, the Government is cutting the quotas on foreign imports of steel by 60 per cent and doubling the tariff to 50 per cent.
The Government has admitted that the steel tariffs it is bringing in next month could force smaller firms out of business.
Department for Business and Trade interim permanent secretary Amanda Brooks made the admission to the Public Accounts Committee this week.
From July 1, the Government is cutting the quotas on foreign imports of steel by 60 per cent and doubling the tariff to 50 per cent, to try and protect domestic producers and particularly British Steel, in Scunthorpe.
However, firms that repurpose imported steel, such as Cleveland Steel & Tubes (CST) in Thirsk, have warned The Yorkshire Post that this could cost thousands of jobs.
Ms Brooks told the PAC that these firms “will need to be using the quotes and paying the out of quota tariff”.
When quizzed by Sheffield South East MP Clive Betts that this would risk some firms “not having a business”, she responded: “Well, yes, I’m afraid that may well be the case.”
Mr Betts raised the issue that many firms - including those in his own constituency - said they have no choice but to buy imported steel, as the UK does not produce enough.
CST managing director Roy Fishwick previously told this paper: “We are going to see reductions in our activity.
“Our business volumes will fall and so that will subsequently impact the decisions the business takes.”