Industry bodies including the Construction Leadership Council, British Constructional Steelwork Association and Construction Products Association met ministers last month to flag the risks tied to the planned July shake-up.

Contractors said the planned 60% cut in import quotas and imposition of 50% tariffs above limits risk piling fresh cost pressure onto a supply chain already battling rising energy, fuel and shipping costs.

In recent months the price of structural steel has jumped by up to 30% due to these pressures alone.

The industry warned at the meeting that the tariffs move would hit project viability and disrupt delivery unless mitigations are agreed quickly.

Ministers have now committed to work with the sector in the coming weeks to identify solutions before the new regime lands on 1 July.

Chris Durand, president of the British Constructional Steelwork Association, said the long-term push to boost UK steel production and decarbonisation was welcome but warned of unintended consequences.

He said higher raw material costs would feed through to fabricators, making UK and Irish steelwork less competitive and potentially driving developers towards alternative materials or imported fabricated steel.

Durand also flagged a loophole risk, with fabricated steel not currently subject to quotas, raising concerns that imports could simply shift further up the value chain.

The talks provide the first sign ministers may soften their approach after industry backlash to the strategy, which is designed to lift UK steel’s share of domestic demand to 50%.

But with the policy still on track for July, contractors face a nervous wait to see whether any meaningful relief emerges.

One smaller fabricator told the Enquirer: “We have already seen section rates jump from around £700 in February to £950 a tonne.

“While the industry tends to focus on Cat A & B rates it is worth noting hollow sections were around £1,100 in February and shot up to £1,450 overnight.

“The tariff plan has led to mills and stockholders scrambling to get steel in before this date. The expectation is for supply to tighten dramatically from July onwards, which again will put upwards pressure prices.”