UK expected to reduce amount of steel it allows in tariff-free

"The UK is expected to reduce the amount of foreign steel it allows in tariff-free, as the government looks to protect its domestic industry amid a global glut and a rise in protectionism. Ministers are considering changing the quota system that allows a quantity of the metal to be imported before imposing a 25% levy on anything above that level. Lower tariff-free quotas could be announced in April, for implementation from 1 July, according to three people with knowledge of discussions."

"Donald Trump first responded to the glut in March 2018 during his first presidential term with steel tariffs of 25%. He then doubled them to 50% in June last year. The levies, which effectively shut off much of the US market to steel imports kicked off a wave of protectionism, as producers scrambled to find new buyers, whatever the price, and markets such as the EU and Canada reacted by putting up their own barriers."

"The government retains control over the British Steel and Speciality Steel steelworks that would be left exposed if the steel safeguards are not replaced. The steel safeguards were first imposed by the EU in 2018 when the UK was still a member to prevent a flood of cheap steel redirected from the US."

The UK plans to lower duty-free import quotas for steel and may announce new limits in April for implementation from 1 July. The move responds to a global steel surplus driven by large exports from China and increased shipments from Vietnam, Korea and Turkey. Earlier US tariffs prompted a wave of protectionism that redirected steel flows and pressured markets. Existing UK safeguards, adopted after Brexit and originating in 2018, expire in June and cannot be extended under WTO rules. The government controls key domestic steelworks that would be vulnerable without replacement measures, while the EU plans higher tariffs and smaller quotas.

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