Steel bosses warn ‘back door’ loophole in UK trade rules could lead to job cuts and closures

New measures will protect Tata and British Steel but allow foreign pre-made parts into the UK, say industry bosses

Steel bosses have warned ministers that a “back door” in new trade rules could hit British manufacturers and lead to job cuts and factory closures by allowing a vast array of foreign products to still enter the UK tax-free.

The loophole means pre-made steel parts ranging from bridge sections, columns and door frames, all the way to smaller rods and tubes used in buildings, will escape recently announced import tariffs, the Guardian understands.

Earlier in March, ministers said they would double tariffs on imported steel and cut the amount that can be bought from abroad in an attempt to protect Britain’s struggling steelmakers from a flood of cheap imports from China.

But industry bosses say the measures overwhelmingly target imports of the metal straight from the furnace – protecting the likes of Tata and British Steel – but leave products that have already been drilled and cut into shape untouched.