'It's a huge own goal': How steel tax could be 'catastrophic' for NI firms

Serious concerns are being raised about the impact new steel taxes will have on manufacturing and engineering companies in Northern Ireland.

On Wednesday a new UK government policy came into effect which will see higher taxes on buying steel from overseas and halve the amount of tariff-free steel imports allowed in.

Darragh Cullen, who is managing director of a company that relies on steel, called it a “huge own goal” from the government, saying it is “effectively assisting our international competitors”.

The UK business and trade secretary said it was “designed to both protect UK steelmaking from global overcapacity, while giving businesses across the supply chain the certainty they need”.

Peter Kyle added that he would review the measure after 12 months.

The European Union also introduced similar measures on the same day.

A steel worker standing in front of a furnace with his outline dramatically lit up by the flames behind him. The man is wearing protective overalls, a helmet and goggles, and holding what looks to be a long metal rod or pipe.

Manufacturing NI said one firm had already moved production out of Northern Ireland [Reuters]

The Mid Ulster council area is widely considered the centre of manufacturing in Northern Ireland, with 20% of the country’s manufacturing employment based in the district.

EDGE Innovate, based just outside Dungannon, uses steel to make equipment for the quarrying, mining and recycling industries.

Darragh Cullen, said the government wanted to protect the manufacturing of steel in Britain which was “understandable” – but he said its “methodology” was “highly questionable”.

“The price of steel is now more expensive for us, that will make us less competitive, meaning we’ll export less, we will bring less money into this economy and it is a potential threat to jobs.

“To me it’s unbelievable that the UK government is effectively assisting our international competitors outside the UK who don’t have to pay this tariff, it feels like a huge own goal.”

Michael McGrath, a man with short, spiky grey hair, stands at the entrance of a workplace, looking directly at the camera. He is wearing a black polo shirt under a black body warmer.

Michael McGrath, from Crushing Screen Parts, said the company was competing with international firms [BBC]

More than 40% of the world’s mobile crushing and screening equipment is made in Mid Ulster.

Michael McGrath, director of Maghera company Crushing Screen Parts, said they were competing with companies in Romania, Brazil and China, not just locally.

“So if you keep adding costs on top of me that aren’t being added to my global competitors, then we’ll just continue to see our opportunities decline, it’s another body blow to the local industry.”

Stephen Kelly, a man with short, curly fair hair, looks at the camera in a factory or warehouse setting. He is wearing a yellow high-viz vest over a dark suit, white shirt and blue tie.

Stephen Kelly, from Manufacturing NI, said the impact of the taxes would be “profound” [BBC]

A body representing the manufacturing industry in Northern Ireland has said the policy could be a “catastrophic” move for companies who rely on steel to make their products.

Stephen Kelly from Manufacturing NI said: “We have lobbied the UK government around this issue but it has fallen on deaf ears and we believe the impact will be profound.”

Kelly said the price of steel had already risen ahead of the tariff introduction and some companies in Northern Ireland had “struggled to maintain competitiveness”.

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“I know of at least one company that has already shifted to making products internationally instead of Northern Ireland, so that’s millions of pounds of turnover that has been lost to other parts of the world.”

What are the steel tariffs?

The UK and European Union (EU) introduced new steel import controls from 1 July 2026.

The EU regulations introduced lower import quotas by limiting tariff-free steel import volumes to 18.3 million tonnes annually, a 47% reduction compared to 2024.

The EU will also apply a 50% customs duty to imports above the quota and to steel goods not covered by it.

Meanwhile the new UK government rules will limit tariff-free steel imports and reduce overall quota volumes by 51%.

Any steel imports above these levels will face a 50% tariff.

Sparks fly as workers wearing hi-vis orange jackets and helmets work with metal at a steel factory.

The UK and European Union (EU) introduced new steel import controls from 1 July 2026 [Getty Images]

The UK government had initially proposed a 60% reduction of tariff-free steel allowed into the UK, but last week they brought this number down to 51%.

The government has also said it has put some arrangements in place order to “ease potential short-term impacts”.

This includes a transitional arrangement whereby goods under contract before 14 March 2026 and imported between 1 July and 30 September 2026 will not face the 50% tariff.

The government has also said that some steel products that can’t be made within the UK are exempt from tariff arrangements.

‘Under the radar’

Barry Taylor, a man with a shaved head and a grey beard, looks at the camera while standing in a park on a bright sunny day. He is wearing a white open-necked shirt.

Barry Taylor, from Mega, said the changes had gone “under the radar” for some companies [BBC]

Manufacturing and Engineering Growth and Advancement (Mega) is a business network based in Mid Ulster.

Its managing director Barry Taylor said the changes had gone “under the radar” for some companies.

“That is a problem because while it seems like technical stuff, the implications are huge,” he said.

“Companies really do need to start thinking about where their steel has come from and how it got here, so they can make commercial decisions that are necessary, either within their supply chain or with their customers.”

Caoimhe Archibald, a woman with reddish brown hair, wearing glasses and a tweed pink jacket.

Economy Minister, Caoimhe Archibald, said she was concerned about the impact of the UK steel tariff [PA Media]

Stormont’s Economy Minister, Caoimhe Archibald, said she was also concerned about the impact of the steel tariff.

She said: “The British government’s current steel strategy is about promoting primary steel production in Britain and in my view there has been little thought about potential downstream impact on the companies here that use the steel.

“There are issues around volumes, so the concern is there won’t be anywhere near enough steel produced in Britain to meet demand.”

She added that the government’s commitment to reviewing the measures in 12 months wasn’t “good enough”.

“I think it needs to be reviewed much sooner, so I will be raising it again with my British counterparts this week and I will once again put my concerns to them.”

‘It’s a huge own goal’: How steel tax could be ‘catastrophic’ for NI firms

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