Under the government’s decision, the volume of steel that can be imported without paying customs duties will be reduced by 60%. Imports exceeding this level will be subject to a 50% tariff, double the previous 25% rate. The new regulation will come into effect on July 1, 2026.
The move aligns the UK’s tariffs with those of the United States and the European Union at a time when trade measures are increasing under US President Donald Trump’s “America First” agenda and global trade tensions are rising. The government will also allocate up to GBP 2.5 billion (USD 3.33 billion) through the National Wealth Fund to invest in the steel sector and aims to increase the share of domestically produced steel used in the UK from 30% to 50%.
Trade Secretary Peter Kyle stated that steel production in the UK is vital for national security, critical infrastructure and the economy, adding that the strategy aims to close the decades-long period of destructive deindustrialisation and focus on strengthening Britain as a steel-producing nation.
Unions and industry bodies welcomed the government’s measures. Despite accounting for only 0.1% of the UK’s economic output in 2024, the sector provides employment to 37,000 people, mainly in regions with industrial heritage that are considered strongholds of the Labour Party.
The country’s two largest steel producers have faced financial difficulties in recent years. Tata Steel shut down its blast furnaces in Port Talbot, while the government had to take control of British Steel to prevent the closure of the Scunthorpe plant owned by China’s Jingye, a move that resulted in significant costs.
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