A Yorkshire-based steelwork manufacturer is calling for a public inquiry into the future of Britain’s steel industry, warning that government trade measures could make manufacturing overseas more attractive than producing goods in the UK.
Tadweld, a specialist steelwork manufacturer based in Tadcaster, says the government’s new steel tariff regime risks creating an uneven playing field by protecting primary steel producers while leaving many fabricated and derivative steel products outside its scope.
Introduced in July 2026, the measures reduce tariff-free import quotas for specified steel products by 51% and increase out-of-quota tariffs to 50%. However, many finished fabricated steel products remain exempt. Tadweld argues this creates an imbalance for domestic manufacturers, which may face higher costs when importing raw steel for fabrication, while overseas competitors can potentially import finished products without facing the same tariff pressures.
Chris Houston, Managing Director at Tadweld, said: “We are heading towards 2027 and still haven’t properly answered one of the biggest questions facing British manufacturing: why should it cost more to make something in Britain than to manufacture it overseas and import the finished product?
“The government has introduced tariffs to protect British steel production, but there is a fundamental flaw in the approach. If you’re making steelwork abroad, you can potentially bring the finished product into the UK without facing the same tariff pressures as a British manufacturer buying the raw steel and doing all the fabrication here.”
Houston believes a public inquiry should examine the wider implications of steel policy, considering the impact on fabricators, manufacturers, distributors and customers, rather than focusing solely on primary steel producers.
The government has acknowledged concerns about potential tariff circumvention through imports of semi-finished and fabricated steel products. It has committed to monitoring the situation and reviewing the trade measures after 12 months. Tadweld says this review should consider how the different policies interact and whether they risk shifting manufacturing activity overseas rather than strengthening domestic capabilities.
The company has previously highlighted the financial pressures facing UK manufacturers, reporting increases in the prices it pays of 24.51% for mild steel sections, 30.63% for aluminium sections and 5.94% for stainless steel sheets. These increases reflect actual purchasing costs experienced by the business, rather than theoretical market forecasts, illustrating the pressures domestic manufacturers are being forced to absorb.
Houston added: “You cannot build a strong manufacturing economy by protecting the raw material while making it harder for the businesses that use it to survive.
“We want to see British steel used in British manufacturing, and we want to see British businesses winning the work. But that requires a level playing field and joined-up thinking from the government.
“That’s why we support a public inquiry. Not to apportion blame, but to understand the consequences of current policy and make sure we have a clear picture of the challenges facing the entire industry.”
Tadweld believes the UK needs a steel strategy that supports every stage of the manufacturing process, from primary production through to fabrication and finished products.
As the industry moves into 2027, the company says there is an opportunity to address the shortcomings of the current approach before they become more deeply embedded in the UK economy.
“Protecting steel production is important, but protecting the ability to manufacture in Britain is just as important. The two should go hand in hand,” Houston concluded. “A public inquiry would be an important first step towards making sure they do.”
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