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UK to cut steel import quotas by 60% to protect domestic steel industry

Under a new regulation announced on March 19, 2026, the UK government will implement new trade measures on steel imports starting July 1, 2026.

UK to cut steel import quotas by 60% to protect domestic steel industry

Under the new measures, total duty-free steel import quotas will be reduced by 60% compared with the current steel safeguard regime. Imports exceeding the quota limits will be subject to a 50% tariff.

The regulation covers steel products that can be manufactured domestically in the UK, highlighting the importance of local production for critical infrastructure and defense supply chains.

In its statement, the government cited OECD data indicating that global steel overcapacity is expected to reach 721 million metric tons by 2027, putting continued pressure on prices and production levels.

The government also noted that UK crude steel production has declined by more than 50% over the past decade, stating that the new measures are intended to strengthen domestic production and improve the long-term sustainability of the sector.

Under the new system, import quotas will be administered on a quarterly basis. Unused quotas may be carried over to the following quarter but cannot be transferred into a new quota year. The system will operate on a “first come, first served” basis.

The regulation introduces a new quota and tariff structure covering 20 product categories and a wide range of HS codes. The affected products include plates, strips, tubes, sections, wire, and reinforcing bar, among other steel products.

The government also confirmed that it is working on transitional arrangements for products imported between July 1 and September 30, 2026, under contracts signed before March 14, 2026.

Steel products originating from Ukraine will continue to be exempt from the measures due to the ongoing war.

Click here for details of the steel trade measures...

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