The UK government has confirmed the implementation details of its new steel trade measure, which will take effect on July 1, 2026, replacing the current steel safeguard regime. The government has revised the tariff-rate quota volumes following negotiations with the UK’s steel-using industries and distributors.
UK manufacturers warned that measures could increase costs, disrupt supply chains and undermine the competitiveness of downstream industries, as SteelOrbis previously reported.
Quotas to be reduced by 51 percent
Under the new regime, the UK will reduce overall tariff-free steel import quotas by 51 percent compared with the current steel safeguard measure. Steel imports exceeding the allocated tariff-rate quotas (TRQs) will be subject to a 50 percent tariff, replacing the existing 25 percent safeguard duty, which will cease to apply after June 30, 2026.
In the initial announcement, the proposed regime would reduce tariff-free steel import quotas by around 60 percent and impose a 50 percent tariff on imports exceeding quota limits.
Quotas to operate on a quarterly basis
The tariff-rate quotas will be administered on a quarterly basis, with quota periods running from July-September, October-December, January-March, and April-June.
Unused country-specific or residual quotas will be carried forward to the following quarter within the same quota year. However, unused quotas will not be carried over into the following quota year.
Transitional exemption available for existing contracts
The government has introduced a temporary transitional arrangement for imports covered by contracts concluded before March 14, 2026. Under this provision, eligible imports entering the UK between July 1 and September 30, 2026 will be fully exempt from the new 50 percent out-of-quota tariff, provided importers can demonstrate eligibility.
Ukraine excluded from the measure
The government confirmed that the new steel trade measure will not apply to steel products originating in Ukraine.
Instead, Ukrainian steel exports will continue to benefit from the preferential tariff arrangements established under the UK-Ukraine Political, Free Trade and Strategic Partnership Agreement, subject to compliance with the agreement's rules of origin.