Britain Tightens Steel Import Caps to Safeguard Domestic Industry

The British government is introducing more stringent import restrictions on steel from Vietnam, South Korea, and Algeria. This move aims to bolster Britain's domestic industry, which faces challenges from a global oversupply of steel and trade upheavals.

Despite efforts like negotiating the potential removal of U.S. tariffs and taking over British Steel, significant pressure remains on the sector. Trade Remedies Authority's initial recommendations on capping these imports were deemed insufficient by the industry. Consequently, Trade Minister Jonathan Reynolds has decided on stricter limits to protect local producers and maintain security of supply.

Under the new proposal set to be effective from July 1, the import cap for Vietnam is reduced to 20%, and for South Korea and Algeria, it is 15%. These measures aim to temper steel diversion from major players like the US and EU, ensuring the sustainability of Britain's steel industry. The decision awaits final confirmation post consultations with WTO members.

(With inputs from agencies.)