EU halves duty-free steel quota but UK and other partners given better rate

Lead

From 1 July, both the UK and the European Union will introduce new steel safeguards that halve the amount of duty-free steel imports, a move designed to counter global oversupply and protect domestic producers. The measures, announced separately by the UK government and the European Commission, mark a significant shift in trade policy, with the EU offering more favourable terms to 12 trading partners, including the UK.

Coverage Comparison

The Guardian reports on both the UK and EU measures. The UK-focused article, published in The Guardian — World, emphasizes the UK government's attempt to counter a global oversupply of cheap Chinese metal and boost its steel industry. The EU-focused article, also from The Guardian — World, highlights the EU's new safeguards and their impact on trade with the UK, noting that the quotas are designed to reduce cheap Chinese steel entering the bloc.

While both articles acknowledge the shared goal of protecting domestic steel industries, they differ in emphasis. The UK article quotes Business Secretary Peter Kyle, who says the measure is designed to "protect UK steel making from global overcapacity" while giving businesses certainty. The EU article quotes EU Trade Commissioner Maroš Šefčovič, who stresses the Commission is ensuring the measures operate effectively from day one and providing "predictability through clear and transparent quota distribution rules."

Key Claims

UK Measures

The UK government will reduce its tariff-free steel import quota by 51%, less than the 60% reduction proposed in March. This means only 3.2 million tonnes can be imported duty-free into Britain in future. Tariffs on steel imports above the quota will be doubled to 50% of the product's value. The quotas replace existing pre-Brexit rules that set import levels across the EU, which the UK had retained after leaving the bloc.

The government will also exempt manufacturers using 11 specific types of steel from tariffs, following pleas from industry that import duties would cripple them where no local alternative supply exists. The safeguards cover 28 categories of steel, ranging from bars used to reinforce concrete to rolled sheets used in stainless steel sinks and aeroplanes.

The UK produces about 3 million tonnes of steel a year, compared with the world's supply of nearly 2 billion tonnes. UK Steel, the industry trade body, has previously said that without these measures the British industry faced an "existential threat." However, steel users in the UK have protested that the quotas risk raising prices of many products not available from Britain's few remaining furnaces.

EU Measures

The EU has halved the amount of duty-free steel it will accept from abroad, but has agreed to higher levels of imports for 12 trading partners including the UK. These countries, which have a free trade agreement (FTA) with Brussels, have had their quota reduced by just one-third, not 50%. The 12 countries receiving better terms are the UK, Turkey, Korea, Indonesia, Egypt, Brazil, Switzerland, North Macedonia, South Africa, Argentina, Ukraine, and Singapore.

The EU's new steel safeguards mark the biggest divergence in trade with the UK since the Brexit transition period began at the start of 2020. The measures were originally announced to slow the use of Chinese products in European industries, particularly after trade was diverted from the US as a result of Donald Trump's "liberation day" tariffs launched in April 2025.

The EU said last year it planned to cut overall tariff-free imports from non-EU countries by 47% on 2024 levels from 1 July 2026 and double tariffs to 50% for all imports outside those quotas. However, it has struck deals with the 12 FTA countries, allowing them to sell between 66% and 67% of their historic trade on average. The allocations can be adjusted if there are shortages in supply of particular types of steel. The quotas are based on trade data from 2022 to 2024.

The Guardian reports that the quotas for the 12 countries are "linked to past trade," according to EU officials.

Perspectives

The UK government and the European Commission both frame the measures as necessary to protect domestic steel industries from global overcapacity, particularly from subsidised Chinese steel. UK Business Secretary Peter Kyle says the measure is designed to "protect UK steel making from global overcapacity" while giving businesses across the supply chain certainty. EU Trade Commissioner Maroš Šefčovič emphasises the need for predictability through clear and transparent quota distribution rules.

In the UK, UK Steel, the industry trade body, has warned that without dramatic measures the British industry faced an "existential threat." However, steel users in the UK have protested that the quotas risk raising prices of many products not available from Britain's few remaining furnaces.