Defence: Finance
The question
To ask the Secretary of State for Defence, whether he has made an assessment of the potential impact of the 50% steel tariff the Secretary of State for Business and Trade is implementing on July 1st 2026 on the cost of the Defence Investment Plan.
Answered by Luke Pollard
The UK Government's Steel Strategy introduced a new trade measure, due to be implemented 1 July 2026 which links the reduction of tariff-free import quotas to protecting the nation's defence manufacturing capabilities and national security. By capping cheaper foreign imports, the policy aims to prevent the total erosion of the UK's domestic steel industry.
Where specialist steel required for defence is not produced in the UK, the Ministry of Defence (MOD) is working with the Department for Business and Trade to identify affected product categories and ensure appropriate mitigations are in place, including maintaining access to essential inputs without unnecessary tariff impact.
We will publish the Defence Investment Plan (DIP) as soon as we can, but our aim is to ensure decisions in the DIP are robust and support the development of both current and future capabilities. The MOD will continue to both monitor UK steel trade measures and work with both the Department for Business and Trade (DBT) and industry to assess potential impacts on defence.
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