Starting July 1, steel manufacturers in the UK will see improved trade protections, as the government introduces new measures to shield the domestic steel industry from unexpected surges in foreign imports.
Business and Trade Secretary Jonathan Reynolds unveiled the new measures today, following urgent appeals from UK Steel for swift intervention to safeguard local producers. The changes include a substantial tightening of the steel import quota liberalization rate from 3% to just 0.1% year on year. The measure is intended to address the recent influx of redirected imports from the United States after President Trump introduced new tariffs on steel products.
The government will also introduce a cap on residual quotas to prevent any single country from gaining disproportionate access to the UK market and undermining British steel. Stricter country-specific import limits will be implemented, along with new rules to stop the rollover of unused quarterly quotas and bar countries with dedicated quotas from drawing on residual volumes in the final quarter.
Under the updated rules, imports of certain steel categories, such as sheet metal and steel bars, will be capped in line with traditional trade volumes. These restrictions are expected to primarily impact steel products from countries including Vietnam, South Korea, and Algeria.
“We’ve taken decisive action to protect the UK market and level the playing field, and we’ll go further with our new steel strategy to build a stronger, more competitive future for British steel making central to our plan for change,” Reynolds said.
The government has effectively assumed control of the British Steel facility in Scunthorpe from its former Chinese owner, Jingye, and has secured essential raw materials to keep operations running in the near term. However, the looming possibility of increased U.S. tariffs on UK steel products poses additional challenges for the future.
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