Steel Import Restrictions

Lord Fox Excerpts

Tuesday 2nd June 2026 Lords Chamber

[Lord Leong (Lab)]

My Lords, first, we use tariffs only as a last resort, and only in circumstances where we have no other choice. Without action, we risk losing domestic steel-making capability, which would mean that we could not mean critical infrastructure and defence needs without relying fully on imports. Furthermore, as I am sure the noble Lord knows, we are not the only country that has tariffs: the EU has tariffs, Canada has tariffs and the US has tariffs.

On the point about whisky, we have signed a legal treaty with India that underpins the trade deal, and the liberalisation of whisky is a clear part of that. We will adhere to that and support the Scottish Whisky Association to ensure that India meets its obligation.

[Lord Fox (LD)]

My Lords, as the Minister will no doubt realise, tariffs are double-edged. The businesses that use steel that is not being manufactured in this country are in danger of having to pay higher prices for that steel, unless the Government are subtler than seems to be the case to date. Can the Minister undertake forthwith to make sure that the steel catalogue is thoroughly reviewed and that no steel that cannot be made in the United Kingdom would come under any tariff at all?

[Lord Leong (Lab)]

The noble Lord is absolutely right. We recall that the quota currently in place stands at 60%. For most countries, we have not achieved 60%: it is only when we exceed that 60% that that tariff of 50% comes in. Furthermore, we import most of our steel from the EU; 70% of our steel imports are from overseas and 60% from the EU, while India contributes only 5% of the market.