The 2026 UK Steel Strategy, announced in March 2026, aims to revitalise a sector that has seen crude steel production decline by more than 50% over the past 10 years. The government’s vision is to stabilise the industry, return domestic steel production to around 40 – 50% of demand (boosting production from 30%), and transition to decarbonised Electric Arc Furnace (EAF) technology.
TARIFFS AND QUOTAS TO PROTECT UK STEEL
A central pillar of the strategy is a new trade measure designed to protect the UK steel industry from global overcapacity and unfair trading practices.
Implementation Date: The new steel trade measure will come into force on 1 July 2026, immediately after the current UK steel safeguard expires.
Tariff Quotas: The measure will introduce tariff quotas with volumes that are substantially lower than those under the current safeguard.*
Out-Of-Quota Tariff: Any imports exceeding the set quota volumes will be subject to a 50% tariff.**
Expanded Scope: New quotas will be applied to steel categories produced in the UK that are not covered by the current safeguard.*
International Agreements: The strategy includes the development of an international agreement on steel with major trading partners to improve market access and protect against global overcapacity.
- Quota volume data has not yet been made available (as of 20.03.26).
- * The Government is exploring a transitional arrangement under which the new tariff would not apply to goods under contract agreed before 14
WHAT DOES THIS MEAN?
Whilst it is still unclear what the import quota volumes will be – and what they apply to – there is no doubt that the introduction of the reduced quotas and increased tariffs will cause turbulence in the import market and will have a direct impact on the cost and, potentially, the availability of imported steel.
With the EU Carbon Border Adjustment Mechanism (CBAM) charges and tariffs already in play, it is becoming increasingly difficult for import agents to guarantee stable landed costs. As a result, fewer imports are expected to come into the UK and EU around Q3 2026.
These changes will also have an influence on pricing strategies from domestic mills, especially for specialised grades where domestic capacity is limited. It’s widely accepted that any changes will be long term and that prices are likely to remain higher throughout 2026.
