What is the story about?
What's Happening?
The European Commission has proposed increasing out-of-quota steel tariffs, which could significantly impact the UK construction industry. The proposal includes doubling the out-of-quota tariff to 50%, reducing annual tariff-free import quotas to around 18 million tonnes. This move is expected to delay major UK infrastructure projects, as the construction sector relies heavily on steel imports. The UK government has secured limited tariff-free quotas, but the lack of clarity around product coverage and duration creates uncertainty for contractors and developers.
Why It's Important?
The proposed tariff hikes pose a threat to the UK's long-term infrastructure plans, with £530 billion of major projects planned over the next decade. Disruptions to steel supply chains could stall progress and inflate costs, potentially rendering some projects financially unviable. The construction industry faces increased pressure on budgets and timelines, which could reverse progress on affordable housing delivery and other critical infrastructure projects.
What's Next?
The UK government plans to meet with EU leaders to discuss the proposed tariff and explore measures to tighten UK import quotas. Industry leaders are calling for urgent action to secure UK country quotas and prevent a flood of imports that could harm domestic steel companies. The outcome of these discussions will be crucial in determining the future stability of the UK construction sector.
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