UK to halve tariff-free steel imports to counter glut of cheap Chinese metal

The UK government will halve the amount of tariff-free steel imports permitted starting July 1, 2026, in response to a global oversupply of inexpensive Chinese steel and to support its domestic steel industry. This measure introduces new "safeguards" that align with similar import limits being implemented by the European Union. The UK stated that it and the EU have coordinated their approach, acknowledging their interconnected supply chains, following several months of discussions regarding continued tariff-free trade between the two markets. The duty on steel imports exceeding the new quota will double, a move intended to make cheaper foreign steel less competitive and encourage the use of domestically produced metal. This policy change echoes similar protective measures taken by other major economies facing similar challenges from increased steel production and exports, particularly from China. The aim is to create a more level playing field for UK steel manufacturers who have struggled with pricing against heavily subsidized or overproduced foreign steel.