UK poised to reduce tariff-free steel import quotas amid global oversupply

Tuesday, 27 January 2026 13:57:34 (GMT+3)   |   Istanbul

The UK government is expected to reduce the volume of steel allowed into the country tariff-free, as part of broader efforts to protect the domestic steel industry from global oversupply and rising protectionism, according to reporting by The Guardian.

Under the current safeguard regime, certain volumes of foreign steel can be imported into the UK without duty, after which a 25 percent tariff applies. UK government ministers are said to be considering revisions to this quota system, with lower tariff-free limits potentially to be announced in April and to take effect from July 1, 2026.

The current safeguard framework, initially adopted from the EU after Brexit and extended by the UK, is due to expire in June 2026, and cannot be extended further under World Trade Organization rules.

Response to global oversupply

The proposed changes come amid global steel oversupply, driven by record exports from China as well as increasing output from exporters such as Vietnam, South Korea and Turkey.

Leaders from the UK steel sector, including representatives from major firms, have urged the government to introduce stricter import limits aligned with domestic demand, warning that failure to act could undermine domestic production. Some companies have argued that quota adjustments and tighter safeguards are necessary to ensure the viability of key facilities that would otherwise be exposed without protective measures.

Government position and next steps

A government spokesperson described potential quota changes as speculation about a complex issue, stating that no final decision has yet been made but emphasizing ongoing work to protect UK industry. Officials have said a long-term strategy for the sector will be published later in 2026.


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