The UK Government has confirmed details of the implementation of its new steel trade measure, which will come into force on 1 July 2026 and replace the current steel safeguard regime. The government has revised the scope of tariff rate quotas following talks with UK steel-using businesses and distributors.
British manufacturers have warned the measures could increase costs, disrupt supply chains and undermine the competitiveness of downstream industries, as previously reported SteelOrbis .
Quotas will be cut by 51 percentage
Under the new law Under this regime, the UK will reduce overall duty-free steel import quotas by 51% compared to the current steel safeguard. Steel imports in excess of 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.
As initially announced, the proposed regime would reduce tariff-free quotas on steel imports by approximately 60 percent and impose a 50 percent tariff on imports exceeding quota limits.
Quotas will be administered quarterly
Tariff quotas will be administered quarterly, with quota periods running from July to September, October to December, January to March, and April to June.
Unused country-specific quotas or the remaining quotas will be carried forward to the next quarter within the same quota year. However, unused quotas will not be carried forward to the next quota year.
Transitional exemption available for existing contracts
The Government has introduced a temporary transitional scheme for imports covered by contracts entered into before 14 March 2026. Under this provision, eligible imports entering the UK between 1 July and 30 September 2026 will be fully exempt from the new 50 per cent out-of-quota tariff, provided importers can demonstrate eligibility.
Ukraine is excluded from this measure
The Government has confirmed that the new measure will not apply to steel trade to steel products originating in Ukraine.
Instead, Ukrainian steel exports will continue to benefit from preferential tariff agreements established under the Political, Free Trade and Strategic Partnership Agreement
