Tata Steel UK, a subsidiary of parent company Tata Steel that comes under Indian conglomerate Tata Group, has reportedly warned the UK Government that importing less expensive steel from China, Vietnam, and India will have a significant impact on the local market.The newly implemented tariff quotas, which permit cheaper imports of specific steel goods from other countries, have alarmed UK-based steel providers. They have stated that the UK steel industry may become ‘unsustainable’ and could potentially be a threat to the British labour market, as per the reports.Tata Steel’s Llanwern facility, located close to Newport in South Wales, UK, produces about 6,00,000 tonnes of galvanised steel a year. Although Britain had previously imposed a safeguard tax on steel, India was able to secure an expanded quota for duty-free exports of metallic-coated galvanised steel to the UK as part of the two countries’ free trade agreement. As a result, India’s annual allotment has increased from 98,000 to 1,25,000 tonnes.Tata has cautioned the government that if these numbers continue, its current presence in the UK might become unsustainable. The output of the British plant will ultimately be impacted by cheaper imports.The foundations of the UK manufacturing base as a whole may be jeopardised if fairly-traded imports and domestic output are not properly balanced.Tata is also believed to have said that although it’s not anti-competitive, the UK runs the risk of losing the steelmaking capacity that numerous supply chains rely on under the current arrangement, which could eventually overwhelm domestic output to the point where the UK production capacity becomes unsustainable.The FTA between the UK and India is to lower or remove tariffs on Indian exports to the UK. It also seeks to reduce tariffs on 90 per cent of UK exports to India. Now that the UK-India FTA is in effect, Tata Steel UK has cautioned that importers may be required to pay an additional tax of up to 50 per cent if imports of less expensive steel goods into the domestic market exceed a specific threshold.According to reports, the new regulations permit some nations to export a lot more steel to the UK than they did previously. It highlighted those countries like Vietnam and India that can now export far more than they could in the past. Vietnam now exports 1,74,000 tonnes of metallic-coated galvanised steel to the UK, up from 51,000 tons previously. In similar fashion, India’s export cap was raised from 98,000 tonnes annually to 125,000 tonnes annually.