The UK’s new steel safeguarding quotas, set to take effect tomorrow, will still leave hundreds of downstream manufacturers facing significant costs and disruption despite recent adjustments by ministers. The Confederation of British Metalforming (CBM) issued this warning, representing over 75,000 employees across 200 companies producing fasteners, forgings, and sheet metalwork for aerospace, auto, and defense.
Steve Morley, CBM president and a longtime automotive industry figure, called the decision to increase some quotas a positive move. However, he stressed that the core problem remains: many steel grades required by UK manufacturers are not produced domestically.
“We’re pleased the government listened and eased some restrictions, but the situation is still concerning,” Morley said. “If UK mills fail to deliver the grades or volumes promised, downstream firms will face unnecessary costs or may relocate overseas.”
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Two categories, Cat 14 and Cat 27, are especially problematic.
Tim Jewitt, director of Footprint Tools, a 148-year-old British hand tool manufacturer, called the policy “insanity” and a failure of responsibility. With two UK mills closed, he argued the quotas overlook reality: remaining mills produce only a fraction of needed steel grades. His company relies on a grade not made domestically, forcing imports from Italy.
Jewitt noted his category’s quota was initially cut by 96% before adjustment to a 51% reduction. As a small business, he said larger importers can buy quota allocations in bulk, leaving smaller firms at a disadvantage.
Dynamic Metals, a supplier of aerospace-grade metals, faces an immediate £3.3 million hit from new tariffs. Operations Director Alex Bailey said the measures create uncertainty, risking shortages and price spikes that could disrupt supply chains. His company buys steel in bulk, processes it, and stores it for just-in-time delivery, but fixed-price contracts prevent cost transfers. Bailey warned the shortfall in Cat 14 and Cat 27 quotas covers only a third of actual demand.
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“If the government waits a year to review this, many firms won’t survive,” he said.
Andrew Gardner, procurement director at Hadley Group, criticized officials for dismissing industry input. After months of consultations, the Department for Business and Trade grouped Taiwan—a key supplier of high-quality steel for warehouses—with Turkey and others in one quota, reducing tariff-free volumes. Meanwhile, quotas for lower-cost Vietnamese steel increased.
UK Steel Director-General Gareth Stace acknowledged trade officials for securing access to EU quotas but emphasized that further progress is needed as UK-EU negotiations continue. He added that long-term success depends on broader export access for high-value steel products.