UK — The UK government will introduce new safeguards on steel imports, effective July 1, 2024. These measures include halving the amount of tariff-free steel imports allowed and doubling tariffs on imports exceeding quotas to 50% of the product's value.

Under the new rules, only 3.2 million tonnes of steel can be imported duty-free into the UK. The existing quota of tariff-free steel allowed into the UK will be reduced by 51%. A 60% reduction in the steel import quota was proposed in March. The government will exempt manufacturers using 11 specific types of steel from tariffs; there are 28 types of steel included in the safeguards.

Peter Kyle, the UK business secretary, stated: "This steel trade measure – including today's finalised quota volumes – has been designed to both protect UK steel making from global overcapacity, while giving businesses across the supply chain the certainty they need." He added: "We will continue to engage with industry and review the measure after 12 months."

The new quotas replace existing pre-Brexit rules that set import levels across the EU. The UK had retained these pre-Brexit import rules after leaving the EU. The EU is introducing similar new limits on steel imports for the same purposes as the UK.

Why It Matters

The UK produces about 3 million tonnes of steel a year, while the world's annual steel supply is almost 2 billion tonnes. British steel's biggest export market is the EU. The decision reduces tariff-free imports by more than half.