UK replaces steel safeguard regime with new Steel Trade Measure from 1 July 2026
Date of publication: July 16, 2026.
Introduction
The UK Government has introduced a new Steel Trade Measure, effective 1 July 2026, following the expiry of the UK steel safeguard regime on 30 June 2026. The new measure limits tariff-free steel imports through revised tariff-rate quotas, reduces overall quota volumes, and applies a higher out-of-quota duty to covered steel products. It is intended to support the UK steel industry and address global steel overcapacity.
Key changes
1. Replacement of the UK steel safeguard regime
The previous UK steel safeguard regime expired on 30 June 2026. Under that regime, steel imports above quota were subject to an additional 25% safeguard duty.
From 1 July 2026, the new Steel Trade Measure applies to relevant steel products. Imports above the applicable tariff-rate quota are subject to a 50% duty by value of the goods. GOV.UK states that this 50% duty is shown as "Third-country duty" on the UK Online Tariff Tool.
2. Reduction in tariff-free quota volumes
The UK has reduced overall tariff-free quota volumes by 51% compared with the previous steel safeguard measure. This means significantly lower volumes of covered steel products may enter the UK duty-free under quota arrangements.
3. Scope limited to steel products made in the UK
The measure applies to imports of steel products that can be made in the UK. The Government revised the product coverage following industry engagement and consultation, with the final scope covering 20 steel product categories across specified commodity codes.
Comparison of previous and new regimes
Area | Until 30 June 2026 | From 1 July 2026 |
|---|---|---|
Applicable regime | UK Steel Safeguard | UK Steel Trade Measure |
Out-of-quota duty | 25% additional safeguard duty | 50% duty by value of the goods |
Quota volumes | Previous safeguard quota levels | Overall quota volumes reduced by 51% |
Product coverage | Steel safeguard product scope | 20 steel product categories that can be made in the UK |
Effective period | Until 30 June 2026 | From 1 July 2026 |
Chapters affected
The measure primarily affects steel products classified under Chapter 72 and 73. However, not all products in Chapters 72 and 73 are affected. The measure applies only to the specific commodity codes listed by the UK Government. Importers should check whether their products are included in the covered categories.
Product categories covered
The UK measure applies only to selected steel categories identified by the Government; category numbering follows the existing steel safeguard framework and is not sequential. The Steel Trade Measure covers the following 20 product categories:
Category 1 to 10 | Category 11 to 20 |
|---|---|
Category 1 - Non-alloy and other alloy hot-rolled sheets and strips | Category 16 - Non-alloy and other alloy wire rod |
Category 4 - Metallic coated sheets | Category 17 - Angles, shapes and sections of iron or non-alloy steel |
Category 5 - Organic coated sheets | Category 19 - Railway material |
Category 6 - Tin mill products | Category 20 - Gas pipes |
Category 7 - Non-alloy and other alloy quarto plates | Category 21 - Hollow sections |
Category 12A - Alloy merchant bars and light sections | Category 25A - Large, welded tubes |
Category 12B - Non-alloy merchant bars and light sections | Category 25B - Large, welded tubes |
Category 13 - Rebars | Category 26 - Other welded tubes |
Category 14 - Stainless bars and light sections | Category 27 - Non-alloy and other alloy cold finished bars |
Category 15 - Stainless wire rod | Category 28 - Non-alloy wire |
Administration of tariff-rate quotas
The quota year is divided into four quarters:
Quarter | Period |
|---|---|
Q1 | 1 July - 30 September |
Q2 | 1 October - 31 December |
Q3 | 1 January - 31 March |
Q4 | 1 April - 30 June |
The tariff-rate quotas specify the volume of covered steel goods that may be imported duty-free in each quarter, either under a country-specific allocation or under a residual quota available to other countries on a first-come, first-served basis.
Unused country-specific or residual quota volumes may be carried over to the following quarter within the same quota year. However, unused quota does not carry over into the next quota year.
Additional provisions
Transitional relief for existing contracts
A temporary exemption is available for certain steel imports between 1 July 2026 and 30 September 2026 if they are imported under contracts signed before 14 March 2026. Eligible goods are not subject to the 50% out-of-quota duty and do not count against Q1 quota limits. Importers must keep supporting documents, such as contracts, invoices, payment records, or customs warehousing evidence. To claim the exemption in the Customs Declaration Service, traders must use document code 9Y16 and preference code 100.
Category 1 authorised use quota
An additional quota is available for Category 1 products used in downstream processing. Importers can access this quota on a first-come, first-served basis if the goods are declared under the authorised use procedure. The quota is shared globally and includes a 40% limit per country or territory each quarter. If either the global quota or the country limit is fully used, imports above the quota are subject to a 50% duty.
Ukraine exclusion
Steel goods originating in Ukraine are excluded from the new Steel Trade Measure. Existing preferential tariff arrangements for UK-Ukraine trade in steel continue to apply, subject to compliance with the relevant preferential rules of origin.
Interaction with other duties and measures
The UK CBAM is a separate environmental tax designed to address carbon leakage. It is not part of the Steel Trade Measure. The UK CBAM will take effect on 1 January 2027 and will operate alongside the Steel Trade Measure introduced on 1 July 2026, as well as existing trade remedy measures such as anti-dumping and anti-subsidy duties.
The UK's anti-dumping and anti-subsidy measures on steel continue to apply alongside the new Steel Trade Measure. Where applicable, such duties may apply to imports within quota and may cumulate with the 50% out-of-quota duty once quota is exhausted.
Conclusion
The new UK Steel Trade Measure may increase costs for steel importers. Because tariff-free quotas have been reduced and the out-of-quota duty has increased to 50%, businesses should review their product classifications, customs processes, and sourcing arrangements. Importers should also monitor quota availability closely, as imports may be subject to the 50% duty once quotas are exhausted.
These changes have been updated in ONESOURCE Global Trade Content. For further support on supply-chain risk, tariff management and regulatory compliance, customers may contact their Thomson Reuters Account Manager or Customer Success Manager.