Urgently review & adjust steel import quota & tariff changes - effective 01/07

Either, the timeline for these changes needs extending The 60% quota reduction needs reducing The 50% tariff applied after quarterly quota exhaustion needs significant reduction The impacted commodity codes needs review & reduction Or a combination of some/all of the above

UK steel manufacture & infrastructure, is not immediately capable of satisfying the additional demand which the quota & tariff changes are intended to effect Current changes will have a profound impact on all UK industry, where they have any exposure to the commodity codes affected Thousands of UK jobs directly jeopardised by current legislation

The Government notes the concerns raised by this petition about the steel trade measure that came into force on 1 July 2026, including its potential impact on steel-using industries, supply chains and jobs. We value the important role played by businesses across the steel supply chain and are committed to ensuring that the UK remains a competitive place to manufacture while maintaining a resilient domestic steel sector.

However, the UK steel sector faces an existential and growing challenge from global steel overcapacity, which has placed significant pressure on domestic producers. In 2024, only 30% of UK steel demand was met by steel produced in the UK, despite domestic production capacity being available but under-utilised. Steel is a strategically important industry that underpins our critical national infrastructure, defence capabilities and wider manufacturing base. Maintaining steelmaking capability in the UK is manifestly vital to the national interest.

Canada, the United States and the EU have already put in place similar toughened measures to protect their industries, including 50% tariff rates. If we do nothing, or if we delay the introduction of new measures, our market would quickly become flooded by excess global steel.

Addressing the petition's points directly, the Government carefully considered the implementation timetable, quota volumes, tariff level and product scope before introducing the measure.

• We engaged extensively with UK industry, including through a Call for Evidence in 2025 and ongoing discussions with producers, importers, distributors and steel users.

• Following feedback received after the publication of provisional quotas in April 2026, the Government increased the final overall quota volume by 21% to 3.2 million tonnes, reducing the proposed quota cut from 60% to 51% relative to the steel safeguard, and reduced the scope of the measure from 190 to 181 commodity codes. This was intended to strike a balance between supporting UK steel production and managing impacts on businesses that rely on imported steel. The final measure will maintain a 50% out-of-quota tariff.

• Quotas have been designed to allow for sufficient imports to ensure continued availability of these goods without unnecessary additional costs. Nearly three-quarters of UK steel imports by value (74%) and over half by volume (53%) fall outside of the measure’s scope. The quotas will continue to enable tariff-free imports for categories in scope of the measure.

• If we set a lower tariff (under 50%) than comparable economies, particularly the EU, our market would quickly become flooded by excess global steel. That would attract surges of low-priced imports into the UK, putting further pressure on domestic producers and worsening the challenges facing our steel sector.

• The Government also introduced a number of flexibilities to reduce short-term disruption. These include a transitional arrangement for goods contracted before 14 March 2026, the rollover of unused quotas within the quota year, and the removal of country cap restrictions.

• The Government has additionally worked closely with the European Union to agree an approach that reflects our highly interconnected supply chains, while we continue to work together to strengthen UK-EU steel trade longer term.

Specific arrangements are in place to facilitate the flow of steel to Northern Ireland. These arrangements are set out in updated guidance on GOV.UK (The Steel Notice - https://www.gov.uk/government/publications/reference-document-for-the-customs-northern-ireland-eu-exit-regulations-2020/the-steel-notice). The Government will continue to provide guidance and support traders moving goods from Great Britain to Northern Ireland through the Trader Support Service and work closely with the EU to ensure these arrangements operate effectively in practice.

More broadly, the Government's Steel Strategy sets out a wider plan to strengthen the competitiveness of the UK steel sector through procurement reforms, support for industrial energy costs, improved access to finance and measures to stimulate demand for UK-produced steel. These actions are intended to benefit not only steelmakers but also the wider supply chain that depends on a successful domestic steel industry.

The Government does not intend to suspend or reverse the measure. However, we will continue to engage closely with industry and monitor its impacts.

Department for Business and Trade