UK doubles steel tariffs to save plants

What happened: The UK government has doubled tariffs on imported steel to 50%, effective from July, in an effort to protect domestic steel plants from cheap foreign imports. This move, initially proposed to curb Chinese imports, was agreed upon by EU lawmakers and member states on Monday. The EU will also halve duty-free quotas. Meanwhile, UK construction giant HS2 has warned that these tariff hikes will exacerbate cost pressures in the industry.

Market impact: UK steel producers and construction companies are directly affected. The increased tariffs make foreign steel more expensive, benefiting UK producers but potentially raising costs for UK construction projects. The EU's reduced quotas may also limit UK steel exports to the bloc. HS2, a major UK infrastructure project, has expressed concern over rising costs.

What to watch next: On July 1, monitor the impact of the new tariffs on UK steel producers' earnings and UK construction companies' cost structures. Additionally, watch for any retaliatory measures from affected countries, which could disrupt global steel trade dynamics.