Steel Tariffs

Lord Ahmad of Wimbledon Excerpts

Thursday 18th June 2026 Lords Chamber

[Lord Leong (Lab)]

My Lords, I will address the noble Lord’s first point. Following extensive engagement with downstream importers, we have introduced a transitional arrangement, as the noble Lord knows, so that the new tariff will not apply to goods contracted before 14 March and imported between 1 July and 30 September of this year. Quotas will be administered quarterly, with unused allocations carried forward within a quota year to provide greater flexibility.

To address the point about the EU, the United Kingdom and the European Union share a unique trading relationship, with highly integrated steel supply chains that support jobs and industry on both sides. We are, as all noble Lords know, engaging closely with the European Commission to secure a solution that protects the vital EU-UK steel trade. While I cannot comment on live discussions, we have made it clear that restricting UK access to the EU market would disrupt supply chains, increase costs and harm businesses in both the UK and the EU.

[Lord Ahmad of Wimbledon (Con)]

My Lords, I note and welcome the recent agreement reached by the Prime Minister and the Prime Minister of India, on the FTA and its commencement date in July. However, there is another issue on the horizon when it comes to steel tariffs, which is the imposition from 1 January next year of the carbon border adjustment mechanism, particularly on steel which is imported into the country, and which relies on coal. Bearing in mind India’s heavy burden on coal manufacturing, will we need to look at the FTA again?

[Lord Leong (Lab)]

First, I thank the noble Lord for all his work when he was a Minister in having conversations with the Indian Government. We should be celebrating and we should all be delighted that the landmark UK-India trade deal will now finally take effect from 15 July, delivering benefits for businesses and working people across the United Kingdom. This agreement, which is the most comprehensive India has ever concluded, is expected to boost UK GDP by £4.8 billion, increase bilateral trade by around £25.5 billion annually and raise real wages by £2.2 billion. Key sectors will benefit from this substantial tariff reduction, including exports of whisky, automotive products and cosmetics. I will write to the noble Lord on CBAM.