China's decision to impose a higher levy on types of specialist steel will have little impact on Britain's steel industry, the government has said.

Ministers have been under pressure to act after China announced it was bringing in higher tariffs of up to 46% on some types of steel imported from the EU, Korea and Japan.

But the Department for Business insisted that Britain actually exported "very little" of the grain-orientated flat-rolled steel covered by the levies.

There have been accusations that global imports of cheap steel from China has contributed to undermining the future of British steel.

It comes as thousands of British workers face losing their jobs unless a buyer is found for Tata Steel's UK business.

David Cameron has raised concerns about the UK's steel crisis with the Chinese president.

A government source said the G20 summit later this year would be a good forum to address the issue.

Liberal Democrat leader Tim Farron said the UK steel industry was now paying the price for Chancellor George Osborne's determination to woo Beijing at any price.

"The Chancellor has made a 'better relationship' with China, a cornerstone of his economic policy. Now the consequences of that decision are being felt by steel workers.

"Rather than standing up for China in the EU, by blocking higher tariffs on their steel, he should be standing up to China on behalf of the UK steel industry."