Exhausts family firm 'may shut over steel imports'

A garage owner in Worcester says the family business could be forced to close, after the government announced higher taxes on importations of steel from overseas.

John Taylor, managing director of A44 Exhausts, said there was a "massive problem coming up in July", when tariff-free steel import quotas will be cut by 60% on certain products.

Imports above the quota will face a 50% tariff, after the government said the UK steel industry had been "severely impacted by persistent global overcapacity".

Taylor said he was "extremely" worried, adding "if this [is] not stopped, we face oblivion".

"The main problem is you can't buy stainless steel over here," he continued.

"The UK only produces 1% of the total market we need. It's gonna clobber manufacturing left, right and centre, especially for us.

"But I was speaking to a number of our clients, [they] weren't aware of what was coming in.... and they're all panicking."

Taylor, who is calling on the government to do a U-turn, said it "lowered the quota, so... there's less material [that] can be brought in, but at the same point in time they've taken it from 25% up to 50% [tariffs] in July".

A government spokesperson said: "The new steel trade measure aims to strike the right balance between protecting UK steel production and maintaining secure supply.

"We will conduct a formal review after 12 months to ensure it remains effective."

Earlier this month, the Department for Business & Trade said that from 1 July, "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," it said.

"The measure will apply to imports of steel products that can also be made in the UK."

It also stated the effects of "overcapacity, compounded by high operating costs, have resulted in UK crude steel production declining by more than 50% in the last 10 years".

The government has said domestic steelmaking was essential to "the resilience and security of the UK's critical national infrastructure and defence supply chains".

Follow BBC Hereford & Worcester on BBC Sounds, Facebook, X and Instagram.