UK Government brings in tough tariffs on foreign steel to boost domestic production

Less cheap steel will be imported into the UK as the government aims to increase steel domestic steel production. The amount of steel able to be imported into the UK will be lowered and anything brought in above that level will be subject to a new 50% tariff, the business department said.

The UK steel industry, which has been calling on the government to shield it from cheaper steel made abroad, welcomed the measures.

The UK Government says it will protect domestic steelmaking and build more resilience in the supply chain for critical national infrastructure and defence.

On a visit to Tata Steel Port Talbot to meet steelworkers and launch the strategy UK business secretary Peter Kyle announced a target to boost domestic production.

From July 1, 2026, overall quota levels for steel imports will be significantly reduced. It will apply to imported steel products only where they can be made domestically. 

Business and trade secretary Mr Kyle said: "Making steel in the UK is vital for national security, critical infrastructure and the wider economy. Steel-making is a cornerstone of our modern industrial policy that deliberately focuses support for key industries, technologies, and strategically important sectors.

"With this strategy we are closing the decades-long chapter of destructive de-industrialisation and committing instead to strengthening and sustaining Britain as a steel-making nation.”

First Minister of Wales, Eluned Morgan, said: “Steel has a long and proud history here in Wales where the industry is the lifeblood of many communities.

“The publication of the UK Government’s steel strategy is good news for our steel communities and the thousands of people across Wales who work in or around the industry now and in the future.

“The commitment for 50% of steel used in the UK to be made here is important not just for steelworkers but to the Welsh economy as a whole. The strategy also re-affirms the transition to electric arc steel production in the UK where Port Talbot is leading the way not just in the UK but across Europe. It was great to be able to meet the Tata management and unions again and to see the progress that has been made in building the new electric arc steel plant.

“The Welsh Government has fought tirelessly for a good future for steel at Port Talbot, Llanwern, Shotton, and tinplate at Trostre, Llanelli.”

The new strategy also:

• confirms electric arc furnaces (EAF) as the future of British steelmaking, continuing the shift from blast furnaces to cleaner EAF-based production using recycled scrap to support net zero;

• enables offshore wind developers to include steel manufacturers in the next round of clean industry bonus applications (to maximise UK steel use in renewables;

• launches a cross-government working group to secure a sustainable supply of scrap metal for UK steelmakers, and;

• tasks the Steel Council with action on workforce needs and practical research and innovation to boost productivity and competitiveness.

Alongside the new trade measures being announced on Thursday the UK Government will also be raising the UK’s maximum most favoured nation (MFN) steel tariffs at the WTO to 50% to protect domestic industry in the long run from the impacts of global overcapacity.

In tandem the government will explore the possibility of introducing requirements to identify where steel imports are melted and poured.

There will be a quarterly rollover of quotas within the year and a review of the measure after 12 months.