UK Tightens Steel Import Safeguards to Protect Domestic Industry

New UK Steel Import Safeguards Take Effect July 1

The UK government has announced a sharp tightening of steel import safeguard measures, exceeding the original recommendations of the Trade Remedies Authority (TRA). Beginning July 1, 2025, a 15% cap will apply to individual countries’ quarterly usage of steel import quotas in three key categories: metallic coated sheet (Category 4), quarto plate (Category 7), and rebar (Category 13).

Previously, the TRA had proposed a 40% cap for these categories. However, Secretary of State Jonathan Reynolds opted for a more restrictive stance. He also reduced the quota liberalization rate across 14 product categories to just 0.1%, down from the initially planned 3%. These adjustments aim to protect domestic producers amid ongoing global steel oversupply and post-pandemic market imbalances.

Additional restrictions include preventing the rollover of unused quarterly quotas and blocking WTO members with specific quotas from accessing residual quotas in the final quarter. The UK will also revise its developing country exemptions based on updated 2024 import data, aligning with WTO safeguard rules.

Industry Reaction: Domestic Gains vs Importer Setbacks

Domestic producers welcomed the updated UK steel import safeguards as a sign of strategic government backing. The new 15% cap strengthens protection for UK steelmakers. However, importers face tighter constraints—especially for products not widely manufactured in the UK, such as coated sheet and quarto plate, which often rely on imported feedstock.

UK Steel director general Gareth Stace stressed that the safeguards are necessary to offset the impact of redirected steel flows following the US’s Section 232 tariff hike. He also emphasized the need for a robust replacement trade defense system in 2026 when current safeguards expire.

Meanwhile, the UK is negotiating with the US to reduce the current 25% tariff on its steel exports. These talks remain critical, as most global exporters still face a 50% tariff. Despite 15 antidumping and two anti-subsidy measures in place, low-cost imports continue to strain the UK steel market, which has not fully recovered from recent demand slumps.

SuperMetalPrice Commentary:

The UK’s tighter import safeguards reflect a decisive policy shift toward industrial self-preservation. While producers gain short-term relief, long-term market health will depend on how the UK balances protectionism with global competitiveness. The pending 2026 trade defense framework will be pivotal for investor confidence and sectoral resilience.