UK Extends Steel Tariffs on China for Two More Years to Protect Domestic Industry

The UK cabinet decided to keep the duties on China in place despite the fact that the move risks breaching World Trade Organization (WTO) rules.

Tariffs on steel imports from China and other countries are to be extended for another two years, British Trade Minister Anne-Marie Trevelyan said, noting that the government was acting in the "public interest" to protect "thousands" of jobs in the country.

"The government wishes to make it clear to parliament that the decision to extend the safeguards [tariffs] on the five product categories departs from our international legal obligations under the relevant WTO agreement... However, from time to time, issues may arise where the national interest requires action to be taken, which may be in tension with normal rules and procedures," she said.

The industry trade body UK Steel backed the tariffs, as well as the opposition: Nick Thomas-Symonds, the shadow international trade secretary, said the decision would be a "welcome relief," protecting the manufacturers from the cheap imports.

The decision was announced after earlier this month, reports emerged suggesting that Prime Minister Boris Johnson plans to introduce new "safeguard" import limits in order to protect British manufacturers from a "flood of cheap steel". According to the press, it is a part of PM's attempt to boost popularity of the conservatives in industrialized "red wall" areas of Britain; the Tories previously suffered a major blow during local elections in May, losing multiple seats to the Labour party.

He also said the tariffs would be in line with UK law but might be challenged within the WTO as violating the nation's obligations.