26.05.2026 - Updated 25.06.2026

The UK Government will implement new steel import measures from 1 July 2026 to protect domestic steelmaking amid global overcapacity and declining UK production. These measures aim to secure supply chains in critical sectors and form part of a broader UK Steel Strategy.

  • The policy will cover 20 steel product categories with a tariff-rate quota system reducing duty-free import volumes by 51% imposing a 50% tariff on imports above quota.
  • Access to the duty-free quota will be managed by HMRC on a first-come, first-served basis with unused quarterly quotas rolling over to the next quarter, but not to the next quota year.
  • Transitional exemptions will apply so that goods that were under contract prior to March 14 2026 are fully exempt from the 50% out-of-quota duty between 01 July and 30 September 2026.

What are the Steel Trade Measures?

Steel trade measures manage the way steel imports are allowed into an economy.

Import restrictions are government- imposed limits on the quantity or type of goods that can be imported into an economy. Typical import restriction measures that can be used for steel products include; import taxes (tariffs); volume restrictions on specified goods (quota’s); trade and regulatory rules that define the original country of origin despite any processing into a final product or good (melt and pour rule). 

Import restrictions often use a combination of these measures and will be imposed on a general or time-limited period and can be the subject of regular review undertaken by government or appointed regulator.  

The UK Government has confirmed new steel import measures will take effect from 1 July 2026 replacing existing import measures that expire on 30 June 2026.

Why have they been introduced?

The new measure is set against a backdrop of sustained global steel overcapacity and a long term decline in UK steel production. Government figures indicate that UK crude steel output has fallen by more than 50% over the past decade, with global excess capacity expected to continue increasing over the coming years.

Domestic steelmaking is critical to the resilience and security of the UK’s supply chains, particularly in sectors such as defence, energy, and transport infrastructure. The new trade measure is positioned as a core component of a broader UK Steel Strategy to maintain domestic capability and reduce exposure to import surges that could undermine UK producers.

Which products will be in scope?

The trade measures identifies 20 categories of steel products, defined by specific commodity codes. The focus is on products that can be produced domestically in the UK. The policy objective is to protect domestic steelmaking capacity while still allowing for controlled levels of imports where needed. See Table 1 at the end of this document provides the detail of these categories and underlying commodity codes. If the product is not listed, then there is no quota and therefore no tariff will be applied.

What measures are being considered? 

From 1 July 2026, the UK’s measures will reduce the volume of imported tariff-free steel. Overall quota volumes will be cut by 51% compared to the current safeguard arrangements. It will apply across the defined 20 categories of steel products and will operate as a tariff rate quota system. This will allow up-to quota threshold steel volumes to enter the UK without additional tariffs, while imposing a duty of 50% above threshold limits. The tariff-rate quota system will operate on a quarterly basis, commencing 1 July 2026. Transitional exemptions will apply so that goods that were under contract prior to March 14 2026 are fully exempt from the 50% out-of-quota duty between 01 July and 30 September 2026.

What impact will they have on manufacturers?

The reduction in tariff free quota volumes for the 20 identified steel product categories is likely to have practical and commercial consequences. With lower quota thresholds, duty free volumes may be exhausted more quickly which could result in higher landed costs, pricing changes, and the need to reconsider sourcing strategies. Importers may also need to pay greater attention to timing, customs declarations, and quota management, particularly where shipments are planned close to the implementation date and the quarterly start and end dates thereafter.

What did Make UK call for and what has happened since?

Make UK called for changes of the proposed quota levels for certain categories of steel where the proposed quota level is misaligned with UK steel production capacity.

The changes secured from the provisional measures announced in March 2026 include:

  • Commodity codes removed from Categories 14, 26 and 28
  • Quotas updated for Categories 1,4, 5, 6, 12A, 12B, 14, 15, 17, 19, 20, 26, 27 and 28. 
  • Full details in Table 3 of the ‘ UK’s steel trade measures’ in the link below

What can a manufacturer do now to mitigate the impacts?

Steel importing businesses or steel‑intensive supply chains should:

  • Review whether their steel products fall within categories that can be UK produced 
  • If you don’t know the commodity code of the materials you’re buying and or quoting for in future contract, then check with your supplier.
  • Assess exposure to reduced quota volumes and potential above‑quota tariffs
  • Monitor quarterly quota allocations (quotas roll over within the year)
  • Review contract terms, pricing mechanisms, and risk allocation
  • Consider putting in clauses in any bids for contracts where the price of material may change due to tariffs or consider reducing validity periods on quotations
  • Engage with suppliers and logistics providers on timing and customs planning
  • Monitor further Government guidance as the final scope and quotas are confirmed

What is happening internationally?

UK measures are not in isolation to the actions of other key trading partners who are acting to protect domestic producers from the global oversupply of steel. 

  • United States: from Q1 2025, 50% tariffs on steel. Tariffs are also applied on steel derivative products (since Aug 2025 and will be continuously adjusted). UK secured preferential 25% tariff on steel.
  • Canada: 50% (25% for trade partners) tariff-rate quota on steel, 25% on steel derivative, global surtaxes, and ‘melt & pour’ rule on imported steel products through to mid-2027.
  • European Union: from 1 July 2026, reduced import volumes to 18.3 million tonnes annually across 28 steel categories. 50% tariff to imports above the new quota and new ‘melt & pour’ rule. Quarterly management of quotas.

The UK Government worked closely with the European Union on how shared steel trade policy including on country allocations within the new respective steel trade measures could be achieved. The measures reflect the deep interdependencies within shared supply chains.

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