UK introduces new steel trade measures, extends safeguards to two new products

The UK government has published an information note on new steel trade measures, provisionally setting out products to which this measure applies, the volume of steel that may enter the UK tariff‑free and the tariff to apply on out-of-quota imports. The government has outlined additional product coverage and other updates.

From 1 July 2026, the government will limit tariff-free steel imports, reducing overall quota volumes by 60 percent compared to the current steel safeguard measure, while any imports above these levels will then face a 50 percent tariff. The new trade measure will apply specifically to steel products that can be produced within the UK, ensuring protection for domestic manufacturing capacity while still allowing limited imports for downstream industries.

The tariff-rate quota set out applies to the 20 product categories, adding stainless bars and light sections and non-alloy and other alloy cold finished bars to the scope of measures.

Sharp cut in HRC quota volume

Within this framework, the government reported that the HRC quota has been reduced by 90 percent, declining from approximately 1 million mt to 102,341 mt annually. It is also noted that the country-specific structure in the HRC category has been revised; country quotas for Turkey and Taiwan have been removed, while separate quotas have been defined for India and South Korea.

Meanwhile, it is reported that the HDG quota has been reduced by only 40 percent and significant individual quotas have been defined for South Korea and Vietnam, while HDG products of Taiwanese origin have been excluded from the scope of safeguard measures. In addition, the US has been allocated some quotas for non-alloy and other alloy quarto plates, stainless bars and light sections, angles, shapes, and sections of iron or non-alloy steel, large welded tubes (25A), other welded tubes and non-alloy wire.

Any unused quota allocated for steel goods originating in a country or territory, or available to any other country (residual) will roll over to the next quarter. Unused quotas will not carry across to the next quota year.

Authorized use quota: new mechanism for downstream processing

A key feature of the new system is the introduction of an authorized use quota, which allows imports specifically for downstream processing.

Under this mechanism:

• imports must be declared under the authorized use procedure,
• access is limited to steel used for further transformation into specified products,
• allocation is handled on a first come, first served basis.

The quota is designed to ensure continued supply for processing industries, while maintaining overall import control.

The authorized-use system covers a broad range of downstream steel inputs, including CRC, metallic coated sheets, organic coated sheets, tin mill products, gas pipes, hollow sections, seamless and welded tubes. These products must be used in further processing to qualify for quota access.

Authorized use operates under a single global quota, with an additional restriction: 40 percent cap per country per quarter, meaning no single country can exceed 40 percent of the quarterly quota, once the global quota is exhausted, a 50 percent tariff applies to all imports, once a country reaches its cap, the 50 percent tariff applies to that country, even if the global quota remains.

In addition, the government is exploring a transitional arrangement under which the new tariff would not apply to goods under contract agreed before March 14, 2026, and imported between July 1 and September 30, 2026, to protect UK importers from unexpected costs.