UK to Halve Tariff-Free Steel Imports to Counter Glut of Cheap Chinese Metal

The UK government has announced new measures to curb the influx of cheap Chinese steel. Starting July 1, the amount of tariff-free steel imports will be halved – a 51% reduction from the current quota – allowing only 3.2 million tonnes to enter duty-free. At the same time, tariffs on steel imports above the quota will double to 50% of the product's value.

The safeguards mirror similar limits being introduced by the EU and replace pre-Brexit rules. Business Secretary Peter Kyle said the measures are designed to protect UK steelmaking from global overcapacity while providing certainty for businesses across the supply chain. The government will review the measures after 12 months.

To address concerns from manufacturers that rely on imported steel not available domestically, 11 specific types of steel will be exempt from tariffs. UK Steel, the industry trade body, had warned that without such drastic action, the industry faced an “existential threat.” However, steel users protested that quotas could raise prices for products not made in Britain.

Britain’s biggest export market for steel is the EU, and negotiators have spent the last three months in talks at the World Trade Organization headquarters in Geneva to reach a deal with the bloc. Government and EU sources cite subsidized industries in China and other countries as the root cause of global overcapacity. When domestic demand in China falls, excess steel flows into export markets, undermining local producers.