When Business Secretary Jonathan Reynolds introduced sweeping tariffs on steel imports this summer, the policy was widely welcomed as a lifeline for Britain’s domestic steel industry. Reynolds promised to defend “a vital industry that underpins Britain’s industrial strength and national security,” while industry body UK Steel called the move a “tremendous outcome” that would shield local producers from foreign competition.
Behind the public acclaim, tensions have grown between primary steelmakers and downstream manufacturers who rely on imported steel. Documents reviewed by The Sunday Times, including letters, emails, and board minutes, reveal disputes over how the new tariffs are affecting the metal economy in the UK.
Primary steel producers such as Tata Steel, British Steel, Celsa, and Speciality Steel employ around 10,000 people and produce semi-finished products like billets, slabs, and blooms. They argue that the tariffs are essential to protect British industry from cheap, state-subsidised imports, particularly from China.
Smaller manufacturers, who transform these semi-finished products into finished goods ranging from car parts to kitchen counters, say the tariffs are driving up costs and threatening their viability. These “downstream” companies support more than 300,000 jobs across the UK.
“British steelmakers are deliberately seeking to damage downstream businesses, even though some are their customers,” said Stephen Morley, president of the Confederation of British Metalforming, representing 200 firms and 70,000 workers. Morley and other trade bodies argue that the government’s decision favored Tata Steel, which allegedly linked tariff protections to its £1.25 billion plan to transition to cleaner electric arc furnaces. Tata declined to comment.
UK Steel maintains that tariffs are vital to safeguard the domestic industry from overproduction in China and redirected exports from Vietnam and South Korea. “If we don’t implement broader import controls, we’ll lose our steel industry,” said Peter Brennan, UK Steel’s director of trade and economic policy.
Downstream companies warn that rising costs could disrupt construction, manufacturing, and infrastructure projects. Britain produces only about 600,000 tonnes of steel reinforcement bars annually, short of the 1.1 million tonnes needed for housing and rail projects, making imports essential. Richard Webster of the British Independent Reinforcement Fabricators Association said tariffs risk slowing critical construction work.
The industry’s divide has prompted Trade Secretary Peter Kyle to commission consultancy Hatch to map UK steel production and demand over the next 25 years. The goal is to identify which products could remain tariff-free without undermining domestic producers.
For businesses like West Midlands stainless steel specialist Kirsty Davies-Chinnock, the stakes are personal. Her products touch daily life across the UK, from kitchen counters and light switches to food service. “You take that away, and you can’t have your coffee, your vitamins — or your kebab,” she said, highlighting the far-reaching impact of the tariff dispute.
The steel sector remains sharply divided, balancing the protection of domestic mills against the survival of thousands of smaller manufacturers and the wider supply chain that underpins daily life in Britain.
