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Steel quotas and tariffs to put further strain on farmers, warns agricultural manufacturer IAE

The firm has highlighted the challenges facing British manufacturing following the introduction of new steel quotas and tariffs set to take effect from July 1

Alex Black
clock • 3 min read
IAE manufactures livestock handling and housing equipment, equestrian stabling, steel fencing and shelters.
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IAE manufactures livestock handling and housing equipment, equestrian stabling, steel fencing and shelters.

IAE, a manufacturer of livestock handling and housing equipment, equestrian stabling, steel fencing and shelters, has called on the Government to work closely with manufacturers to ensure there are mechanisms in place to maintain competitive supplies, manage cost escalation, and safeguard the future of UK industry.

From July 1, the Government will limit tariff-free steel imports, reducing overall quota volumes by 60% compared to the steel safeguard measure.

Any imports above these levels will then face a 50% tariff. The measure will apply to imports of steel products that can also be made in the UK.

Steel tariffs

"Steel is a critical raw material in our production processes, and any disruption to its availability or cost structure has a direct impact on our ability to manufacture competitively in the United Kingdom," an IAE spokesperson said.

"The introduction of quotas and tariffs will inevitably increase the cost of imported steel and limit supply flexibility.

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"This comes at a time when British manufacturers are already managing persistent pressures including energy costs, labour shortages, and ongoing supply chain volatility. For companies like IAE, which are committed to maintaining domestic production, these additional costs cannot simply be absorbed without consequence."

IAE said the tariffs would lead to a measurable increase in input costs across its product range, and while it would try to mitigate this as far as possible, it was inevitable some would need to be passed on.

"This places further financial strain on our distributors and British farmers, who themselves are navigating a challenging economic environment," it added.

"Beyond price impacts, there are broader concerns around the competitiveness of UK manufacturing on the global stage.

"Restricted access to competitively priced steel risks making British-made products less viable compared to imported alternatives, ultimately undermining domestic production capacity. Over time, this could discourage investment in UK manufacturing and weaken the resilience of sectors that are vital to the rural economy."

British manufacturing

It added it remained firmly committed to British manufacturing, which it said played a crucial role in supporting food production, rural employment, and national economic resilience.

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"However, we urge policymakers to carefully consider the unintended consequences of these measures on downstream industries. A balanced approach is an essential one that protects domestic steel producers without disproportionately disadvantaging manufacturers who rely on steel as a core input."

The measures are part of the Government's Steel Strategy which sets the ambition for up to 50% of steel used in the UK to be made in the UK, boosting production from 30%.

However, in its announcement in March it said the new measure was not about stopping steel trade, admitting steel imports were necessary for industry and would continue.

It said quota allocations had been carefully designed through engagement with industry to help maintain security of supply and minimise impacts on the wider economy.

Business and Trade Secretary Peter Kyle said: "Making steel in the UK is vital for national security, critical infrastructure and the wider economy. Steel-making is a cornerstone of our modern industrial policy that deliberately focuses support for key industries, technologies, and strategically important sectors.Ìý Ìý

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"With this strategy we are closing the decades-long chapter of destructive de-industrialisation and committing instead to strengthening and sustaining Britain as a steel-making nation."

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