Hystat Systems raise concerns over proposed UK steel tariffs

A complex challenge for UK industry

At Hystat Systems Ltd, we have always been committed to supporting British manufacturing and sourcing from UK industry wherever possible. However, we have serious concerns regarding the proposed UK steel tariffs and the unintended impact they could have on UK manufacturers, supply chains, and long-term industrial competitiveness.

While the intention behind these tariffs is to support domestic steel production, the reality for many engineering businesses is far more complex.

Many of the specialist stainless-steel grades and sizes required by UK engineering businesses - including 17/4, 316, Duplex, and Super Duplex bars in sizes ranging from 100mm to 510mm outside diameter - are simply not available from domestic suppliers. 

Current UK production capability is generally limited to below 76mm OD. This leaves manufacturers like us with no practical alternative but to import these materials, often through UK-based stockists sourcing from European mills.

Impact on competitiveness and supply chains

Under the proposed tariff structure, some essential imported steel products could be subject to duties of up to 50%.

For businesses operating in highly competitive global markets, this presents a serious challenge. Increasing material costs while competing against overseas manufacturers -- many of whom already operate at significantly lower cost bases - risks placing UK companies at a severe competitive disadvantage.

We have already seen several UK hydraulic companies leave the market under similar pressures. There is a genuine concern that further tariffs could accelerate the decline of specialist manufacturing capability in Britain.

Balancing long-term investment with short-term reality

Hystat remains fully supportive of investment in the UK steel sector and would welcome the long-term development of domestic capability in specialist stainless-steel products.

However, achieving this would require substantial investment and many years of development before it can meet the needs of businesses like ours.

In the short term, manufacturers need practical solutions that protect jobs, maintain competitiveness, and support continued growth within UK industry.

Potential measures that could help strike this balance include:

• Product-specific exclusions where UK supply is not available 
• Adjustments to quota systems 
• Targeted relief mechanisms for specialist materials

The importance of industry voice

We are actively engaging with suppliers and industry partners to explore solutions and would welcome constructive dialogue around these challenges.

Collaboration between manufacturers, government, and industry bodies will be essential to ensuring that policy decisions are grounded in operational reality and support, rather than hinder, the future of British manufacturing.

Hystat remains committed to working collaboratively with stakeholders to ensure the sector can continue to compete, innovate, and grow.

Tim Hammonds

Director, Hystat