Is the government jumping the gun on steel imports?

Dr David Crosthwaite, chief economist at BCIS-Photoroom

The government’s plan to tighten steel import quotas may be intended to back domestic producers, but for construction firms it risks higher costs, weaker supply resilience and fresh uncertainty at a difficult moment, says David Crosthwaite

From 1 July, steel import quotas are due to be reduced by 60% and imports above those quotas will face a 50% tariff. While the changes are intended to support domestic steel production, they are expected to add further uncertainty to an already fragile construction supply chain.

Few in the construction industry dispute the importance of strengthening UK steel production. However, the timing of the new rules has raised concern among contractors and subcontractors about the potential impact on costs, procurement and supply resilience.

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