The Ministry of Defence is working with the Department for Business and Trade to identify defence product categories likely to be affected by a new 50 per cent steel tariff coming into force on 1 July, the department stated in a written answer to a parliamentary question.
Conservative MP Dame Harriett Baldwin had asked the Secretary of State for Defence whether an assessment had been made of the potential impact of the tariff, being implemented under the Business and Trade Secretary’s authority, on the cost of the Defence Investment Plan.
Minister for Defence Readiness and Industry Luke Pollard’s response acknowledged that work to map the implications for defence procurement is still under way.
Pollard said the “UK Government’s Steel Strategy introduced a new trade measure, due to be implemented 1 July 2026 which links the reduction of tariff-free import quotas to protecting the nation’s defence manufacturing capabilities and national security.” He continued: “By capping cheaper foreign imports, the policy aims to prevent the total erosion of the UK’s domestic steel industry.”
On the question of how the measure interacts with defence procurement, the minister said: “Where specialist steel required for defence is not produced in the UK, the Ministry of Defence is working with the Department for Business and Trade to identify affected product categories and ensure appropriate mitigations are in place, including maintaining access to essential inputs without unnecessary tariff impact.”
The Defence Investment Plan itself remains unpublished, with Pollard saying the government will release the document “as soon as we can” and that the aim is to ensure decisions taken within it are “robust and support the development of both current and future capabilities.”
The MoD will continue to monitor UK steel trade measures and work with the Department for Business and Trade and industry to assess potential impacts on defence, he said.
MOD and DBT working together. Nightmare.
It’s nice they’re all rowing in the same direction… straight over a waterfall.
We need to Alloy these fears, stamp out any doubt, forge ahead with the DIP and show the World our Metal.
I’m waiting for the Press release.
Just hope It’s not Forged.
Hmmm … uninformed questions from across the Pond: would there be any political consequences to the current HMG for fully funding the DIP, as envisioned in the SDR? Are there any practical consequences to current ministers, regardless of the details of the plan? Of course the next government could repudiate the DIP, but might incur significant political embarrassment for this course. 🤔
The issue appears to be the PM wanted to fully fund the DIP but due to his lack of authority the Chancellor and back benches refused to comply. Effectively, Starmer was powerless despite being the PM, it’s all his own fault for being weak and performing numerous u turns on policies.
From the BBC on Burnham policies…..
“Policy work has been under way for weeks in areas such as housing and transport.
Some advisers have been looking at ways in which a Burnham-led government may be able to borrow more in some areas.
But Burnham’s allies accept there’s been less developed thinking when it comes to defence, energy and welfare.”
So basically there is no new Defence Policy in the making
No change there then….
Doh, here’s a solution. Only apply tariffs to foreign steel,
• when it’s of a type not produced in the U.K.,
• when imported for non-defence purposes.
Problem solved. 🤷🏻♂️
Do you mean when it is a type produced in the UK or are you expecting to stimulate entirely new production? The problem with exempting defence is that some of our steel relies on Defence procurement. You’d like to think buying British would take precedence over minimising defence costs, but in constrained times, it won’t. The tariffs are there because someone is forecasting a glut on the global markets and plunging prices, which our industry can’t survive.
My conditions were to not penalise defence when we had to buy specialist steel from abroad to fulfil it, but to protect domestic production where it existed and encourage the development of the production necessary for these steel types domestically.
That’s not why the tarrifs are there.
Like everything else related to DIP then!
Another excuse for delay and King Andy is bound to order a review of everything taking years so he can spend baby spend on his pet lefty plans rather than what we need.
ST1,
Agree, any Labour government will seek to delay defence investment for as long as politically feasible. Obviously, Labour plans to punt that football into the next parliament. Not certain that plan will survive scrutiny, as soon as NATO Summit in July. A predicted
2.68% in 2030 that magically transform into 5% in 2035 may not pass the chuckle test. Believe the Greeks coined the terminology for their plays: Deus ex machina.” Surprisingly, even the Polish FM (or PM?) fired a shot across the bow of UK foreign policy, urging significant defence increase or the prospect of increasing geopolitical irrelevance. Things are not going well when even your friends are critiquing policy quite negatively. Best wishes on a reasonable and swift resolution of the issue from a colonial from across the Pond. 🤔🤞🤞
I think material prices can go up or down. Obsessing about that seems pointless. You will probably increase costs simply by wasting time.
Im not happy with whats going on
Its about time the top Generals Admirals and air marshals spoke out as regards whats going on
But no they wait until they retire and get there generous pensions then speak out ( i understand why )
As an example i used to live in Plymouth and as i dont live there anymore i look at the cam on the Hoe
There is very rarly any British ships in the Sound whereas 10/20 years ago you would always see warships in the sound
Nowadays its more ships from other navies that are there (due to FOST)