The UK government has finalized a new steel trade measure that will take effect on July 1, 2026, replacing the existing steel safeguard regime with a revised tariff-rate quota (TRQ) system featuring significantly lower quota volumes and a higher above-quota tariff.
Under the new regime, overall tariff-free import quotas will be reduced by 51pct compared with the current safeguard system. Imports exceeding the allocated quotas will be subject to a 50pct tariff, replacing the existing 25pct safeguard duty.
For Category 1 (hot-rolled coil), the largest steel import category, the UK has introduced separate quotas for standard HRC and authorized-use products. Annual tariff-free quotas for standard HRC have been set at 375,000 tons for the European Union, 33,456 tons for India, 8,785 tons for South Korea and 49,763 tons for residual countries, representing a reduction of around 52.9pct from the previous safeguard regime.
For Category 1 authorized-use products, covering hot-rolled coils imported for further processing, the UK has established a separate global quarterly quota of 595,950 tons for the July-September period, followed by 595,950 tons, 582,993 tons and 589,468 tons in the subsequent three quarters. A 40pct cap applies to imports from any individual country within each quarterly quota before the 50pct tariff is triggered.
The new TRQ system covers 20 steel product categories, including hot rolled sheet and strip, cold rolled sheet, metallic coated sheet, organic coated sheet, rebar, wire rod, merchant bars and light sections, heavy sections, stainless products, rails, seamless tubes, welded tubes and hollow sections. Unused quotas may be carried forward to the next quarter within the same quota year but cannot be transferred into the following year.
The government has also exempted certain specialized steel products that are not manufactured in the UK from the new measures. In addition, transitional arrangements will allow certain shipments made under contracts concluded before March 14, 2026, to enter the UK without being subject to the new 50pct above-quota tariff.
According to the Department for Business and Trade, the measures are intended to address persistent global steel overcapacity while protecting the UK’s steel industry and ensuring security of supply for strategically important sectors. The new regime will be reviewed after 12 months.