Category 4 Steel Imports: Tariff-free Quotas

Debate between Lord Lamont of Lerwick and Lord Leong

Wednesday 22nd July 2026 Lords Chamber

[Lord Leong (Lab)]

My Lords, first, employment impacts form part of the Government’s wider assessment when determining any future steel trade measures. Our objective is to protect jobs throughout the steel supply chain, both in primary steel production and among downstream manufacturers. We continue to engage closely with producers, manufacturers and trade bodies to monitor market conditions. Where evidence suggests unintended consequences, we will continue to review the operation of the regime to ensure it remains proportionate and effective.

[Lord Lamont of Lerwick (Con)]

My Lords, while there is a case for protection for speciality steels for sectors like the nuclear industry, surely the Government’s wider policy on quotas and tariffs is harmful to British industry as a whole. The awkward reality is that the domestic steel industry cannot supply the total demand in this country. Imports have to happen and account for 60% of production in this country. If we do not allow those imports into this country, free of tariffs and quotas, it penalises those who are making finished products, who have to compete with imports which are finished and do not bear this taxation at the border. This is deeply harmful to British industry.

[Lord Leong (Lab)]

I thank the noble Lord for the questions. I think I responded to the noble Lord on Monday on a particular Urgent Question on steel and addressed the tariff issue. However, I will address his point about imports. We have carried out a programme of extensive engagement with industry, as well as negotiations with the EU ahead of its own steel measure coming into effect. Some 74% of all imports by volume fall outside the scope of this measure and will not be subject to any tariffs. For other products, tariffs will only be due once quotas have been exhausted. We will continue to hear from businesses and closely monitor the impact of this measure. We will also review it after 12 months to ensure it remains effective and that the balance is right for both producers and downstream users.

British Steel

Debate between Lord Lamont of Lerwick and Lord Leong

Monday 20th July 2026 Lords Chamber

[Lord Leong (Lab)]

All will be revealed in due course. The noble Lord will know that we took control of British Steel on Thursday. As anyone will know, in any acquisition process there will be a nominal director who will be registered with Companies House until such time as a board of directors has been appointed. The Government are putting a new board in place that has commercial and industrial experience, which is very important: we need people with expertise running this. The priorities will be stabilising the operation, improving performance, protecting health and safety, developing a sustainable business plan, exploring private investment and ensuring that workers’ voices are central to the company’s future, including worker representation on the board.

[Lord Lamont of Lerwick (Con)]

My Lords, is not the decision by the Government to try to protect British Steel by imposing tariffs of up to 50% and reducing quotas down by 60% on imported steel a profound mistake? It harms steel processers and steel users. Let us not forget that steel users are much more numerous than are primary steel producers, and the steel processers and users of steel have to compete with foreign imported finished products. Is not what the Government have done a profound own goal?

[Lord Leong (Lab)]

No, it is not. Let us not forget that overcapacity and artificially cheap steel are why our steel industry is under such threat. Allowing cheap steel imports to enter the UK unchecked would only jeopardise domestic supply and the security of our UK supply chains for our critical infrastructure and defence. The measures put in place have been designed so that we will increase our domestic capacity, which is what the Government are trying to do.

UK Modern Industrial Strategy

Debate between Lord Lamont of Lerwick and Lord Leong

Monday 30th June 2025 Lords Chamber

[Lord Leong (Lab)]

I thank my noble friend for that. It is absolutely right. Let us try to recap. When was the last industrial strategy published? It was some eight years ago, in 2017. Since then, we have had several Conservative Administrations, several Prime Ministers, several Secretaries of State for Business and all that. This industrial strategy is needed now because we are in a pretty unstable global trading environment. Businesses want certainty and stability, and this is what this Government are offering them. They also want a long-term plan and for us, the Government, to stick to our guns. The UK’s world-leading capabilities, pragmatism and clear policy direction make us a prime destination for international businesses. We are attracting investment to this country. Amazon announcing a £40 billion investment last week shows that it has confidence in this Government and in our industrial strategy.

[Lord Lamont of Lerwick (Con)]

My Lords, over the years, Governments have introduced their industrial strategies—I remember the industrial strategy of the Callaghan Government—but I think sometimes they think that they have found a policy when they have simply found a phrase. Industrial strategies in the past have tended to lead to a lot of different funding pots and opportunity for lobbyists. The Minister used the phrase “crowding in”. Crowding in sounds wonderful, but are the Government or the agencies that administer the industrial policy going to avoid two dangers: first, that by combining public money with private money, they are merely subsidising investment that would have happened anyway, and, secondly, if they are subsidising that investment, that it is not a poor investment and that the risk is being taken out of it? How are they going to be able to avoid those two dangers that have plagued industrial strategy in the past?

[Lord Leong (Lab)]

I thank the Lord for that question. He makes several very interesting observations. The reason we have published this industrial strategy is what I mentioned earlier about the global trading environment, but we also have a very clear goal. We want to drive growth. I know many noble Lords have mentioned it, but it is still the number one mission of this Government, and we can achieve that only by better and increased investment. The noble Lord is right. Previous Governments have published investment strategies, but why is this investment strategy different? Past growth plans have often been felt by businesses as being done for them, so it looks as though government knows better and this is what the industrial strategy is for, whereas with this industrial strategy, we work with businesses every step of the way. We have meetings with business representative organisations—in fact, I have learned a new word, “BROs”; we work with trade unions and investors so that this strategy is not only a government strategy but a whole-of-business strategy. That is the first difference. The second difference is that we have listened to the needs of businesses, the need for long-term certainty. Every business that I have spoken to wants three things: certainty, stability and less regulation. That is what the Government are trying to solve through their strategy to reduce regulation by 25%. This is still very much a work in progress, but it is what we are aiming for. We hope that this strategy is different from previous strategies.

Multilateral Free Trade

Debate between Lord Lamont of Lerwick and Lord Leong

Monday 6th January 2025 Lords Chamber

[Lord Lamont of Lerwick]

To ask His Majesty’s Government what initiatives they plan to take internationally to support multilateral free trade and to draw attention to the risks posed to the world economy by tariffs and protectionism.

[Lord in Waiting/Government Whip (Lord Leong) (Lab)]

My Lords, first, I wish a very happy new year to all noble Lords, clerks and doorkeepers. The UK is committed to multilateralism and a rules-based trading system with the WTO at its core. The system provides stability and predictability for global growth and prosperity. We are working with international partners to strengthen the multilateral trading system and to reform the WTO so that it remains relevant in the evolving global scenario.

[Lord Lamont of Lerwick (Con)]

My Lords, I thank the Minister for both his good wishes and his reply. Does he agree that protectionism and tariffs are very great threats to growth both here and internationally, as we learned in the 1930s? If President Trump proceeds with his dangerous idea of imposing more tariffs, I urge the Government not to join the EU in any tit-for-tat retaliation but to maintain an open trading system. Above all, I urge them not to align with the EU on future industries such as AI when Europe so badly lags behind the United States in those areas, and will only incur the wrath of President Trump.

[Lord Leong (Lab)]

My Lords, the noble Lord makes a very important point. We are concerned about any potential threat of a shift towards protectionism and tariffs. The Government will continue to make a very strong case for free trade. After all, we are an open trading economy, and we benefit from that in our trading relationships with other countries. On the point about President Trump, let us not get ahead of ourselves; we will just have to wait and see when he gets into government.