The UK is preparing to reduce duty-free steel imports

Under the current system, steel imports are allowed to enter the UK duty-free up to a certain volume, after which a 25% tariff is applied. It is reported that ministers are considering revising this quota mechanism by lowering the threshold for duty-free imports. According to sources familiar with the matter, the new regulations are expected to be announced in April and to come into force as of July 1.

This move comes at a time when global steel markets are under pressure from excess supply, particularly from China. As the world’s largest steel producer, China’s exports reached record levels again in December, while countries such as Vietnam, South Korea, and Turkey are also seeking new export markets.

Former U.S. President Donald Trump imposed a 25% tariff on steel imports in 2018, later raising it to 50% last year. These measures contributed to a broader wave of protectionism globally, with regions such as the European Union and Canada adopting similar policies.

In the UK, steel imports are currently regulated under a safeguard quota system. However, this regime is set to expire in June. The government is reportedly in favor of introducing new quotas with lower import limits to replace the existing framework. It is noted that, without a new arrangement, facilities such as British Steel and Speciality Steel could face increased competitive pressure.