Chris Barlow, Head of Manufacturing at MHA

“The government’s steel strategy is a broadly positive step for UK manufacturing, but, as ever, the devil will be in the detail. However, today’s announcement will provide manufacturers with some reassurance at a time of significant uncertainty.

“As things currently stand there will be a “cliff edge” from 1st July 2026 in terms of steel with the EU cutting tariff free quotas by c. 47% and doubling of tariffs on excess imports to 50%. This sits alongside US tariffs but against the backdrop of oversupply from Chinese steel production. At recent industry gatherings there has been real concern around the impact this could have on prices and supply. Tariffs may well drive steel prices higher in the short term, and that could feed into inflationary pressures across the wider economy. The question is whether this is a price worth paying to safeguard domestic capability, and in many respects, it probably is.

“A key pillar of the strategy is support for electric arc furnaces. This is welcome, but there remains some debate over whether the steel they produce meets the standards required for the UK defence sector. Some sources suggest it does; others cast doubt.

“The broader push toward green energy is equally important. Anything that reduces energy costs for UK manufacturers will be strongly welcomed. High energy prices have long undermined the competitiveness of British industry, and any meaningful reforms that help lower those costs would be a step in the right direction.

“Overall, the strategy represents a positive direction of travel, but its success will depend on the fine print, particularly around tariff levels, energy support and the capability of new production methods. Protectionist policies work both ways, if tariffs are mis‑calibrated, the impact could backfire quickly. The government must be confident it has set the right thresholds, or the costs to industry could be significant. As always, the detail will determine whether today’s announcement delivers the long‑term stability and competitiveness the sector urgently needs.”

Among its UK-wide locations, accountancy and business advisory firm MHA has offices in Edinburgh and Aberdeen.