UK Steel Industry Backed by Major New Trade Measure and Strategy

UK steel producers and thousands of steel workers from Glasgow to Port Talbot will benefit from a new landmark Steel Strategy as Government takes bold action to protect domestic steelmaking and build more resilience in the supply chain for critical national infrastructure and defence.

• Landmark new Steel Strategy sets ambition for up to 50% of steel used in the UK to be made in the UK, boosting production from 30%.
• UK will introduce new trade measure to support national security by preserving vital steel production for critical national infrastructure and defence.
• Steel import quotas will be reduced with higher tariffs of 50% outside of quotas, ensuring the UK steel sector’s future in the face of global overcapacity.

On a visit to Tata Steel Port Talbot to meet steelworkers and launch the Strategy, the Business and Trade Secretary Peter Kyle announced the Government’s ambition to boost domestic production so that it can meet up to 50% of our domestic demand for steel, and secure the industry’s role in supporting vital UK sectors like infrastructure, defence and clean energy.

Building on the direct financial support the government has made so far, the National Wealth Fund will be the government’s main mechanism for providing up to £2.5 billion of financing for investment in the steel sector this Parliament. The Steel Strategy forms a vital part of the Government’s activist and strategic approach to British industry, taking decisive action to give businesses the certainty and support they need in uncertain times and bolstering the UK’s resilience.

Today, the UK also announces that from 1 July 2026, overall quota levels for steel imports will be significantly reduced by 60% compared to current arrangements, and steel coming into the UK above these levels will be subject to a 50% tariff.

The robust new measure is a vital step to protect UK steel production in the face of global steel overcapacity. It will apply to imported steel products where they can be made in the UK.

Without action, the UK’s steelmaking capability faces real jeopardy, leaving us reliant on overseas suppliers for materials essential to our energy security, defence and transport infrastructure.

Business and Trade Secretary Peter 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.”

The new Steel Strategy also commits to:

• Confirm 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.
• Enable offshore wind developers to include steel manufacturers in the next round of Clean Industry Bonus applications (launching this year) to maximise UK steel use in renewables.
• Launch a cross-government working group to ensure a sustainable supply of scrap metal for UK steelmakers.
• Task the Steel Council with action on workforce needs and practical research and innovation to boost productivity and competitiveness.

Alongside the new trade measure being announced today, the 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.

This approach reflects feedback from government’s recent Call for Evidence, aligns with the UK’s Industrial Strategy and Trade Strategy, and follows months of engagement with UK steel producers and downstream industries.

In tandem, the Government will explore the possibility of introducing requirements to identify where steel imports are melted and poured, in order to better understand our supply chains and ensure the UK steel industry is better protected from global overcapacity.

The new measure is not about stopping steel trade: steel imports are necessary for industry and will continue. Quota allocations have been carefully designed through engagement with industry to help maintain security of supply and minimise impacts on the wider economy.

Following engagement with downstream sectors, there will be a quarterly roll-over of quotas within the year and a review of the measure after twelve months.

The UK remains committed to working with international partners, including the European Union, with whom our supply chains are so connected, to tackle global steel challenges. The UK will also continue to work through the Global Forum on Steel Excess Capacity and take forward efforts to advance WTO reform.

Further good news for the UK’s steel sector will be unveiled later today during the Nigerian State Visit, with a substantial new deal backed by UK Export Finance worth £70 million, for British Steel to supply the refurbishment of two of Nigeria’s trading ports.