Business Secretary Jonathan Reynolds has thrown his weight behind proposals to strengthen the UK’s steel import protections, stepping in to tighten trade safeguards beyond those recommended by the Trade Remedies Authority (TRA) in response to mounting concerns over redirected global steel supply.
The move, welcomed by industry leaders as a “tremendous outcome,” will see the government reduce the annual liberalisation of steel quotas from 3% to just 0.1% — aligning the UK’s approach with the European Union and helping to shield domestic producers from a surge in cheap imports, particularly in the wake of new tariffs on steel imposed by US President Donald Trump.
In a letter to TRA Chair Nick Baird, Reynolds confirmed the government would also introduce a cap on residual quotas to prevent individual countries from dominating UK import volumes and damaging the competitiveness of British steelmakers. The Secretary of State further backed TRA recommendations to prevent unused quarterly quotas from rolling over and to stop countries with their own specific quotas from accessing residual volumes in the final quarter.
UK Steel, the sector’s leading trade body, had lobbied for the tougher measures amid growing fears that global oversupply — exacerbated by US protectionism — could result in a flood of cheap, state-subsidised steel entering the UK market.
“This is a tremendous outcome and a demonstration of the Secretary of State’s commitment to our industry,” said Gareth Stace, Director-General of UK Steel. “These measures will reduce the pressure of steel diversion from the US and EU and prevent countries that flood international markets with unsustainably cheap steel from swamping the UK and driving our steel manufacturers out of business.”
The strengthened safeguards are viewed by industry as essential to defending the UK’s remaining steelmaking capacity, which employs over 33,000 people and supports critical supply chains in construction, automotive, defence, and energy.
Stace added that the measures must now be underpinned by longer-term reforms, calling on the government to introduce a new trade defence mechanism when the current safeguards expire. “This should be introduced in January. The forthcoming Trade Strategy has the potential to deliver new legislation that will equip Government with the tools it needs to defend our companies from the subsidised steel that is currently flooding steel markets at unsustainable price levels.”
The announcement comes at a time of significant pressure on global steel markets. President Trump’s new wave of tariffs has prompted fears that redirected supply — particularly from China, Turkey and India — could overwhelm smaller markets like the UK.
Industry insiders say the intervention by Reynolds signals a shift in tone from the new Labour government, suggesting a more proactive, interventionist approach to strategic industrial sectors such as steel.
The Department for Business and Trade said further details on the Trade Strategy — including potential legislative proposals to reinforce UK trade defences — would be published later this summer.
Read more:
Government backs UK Steel call to tighten import safeguards amid threat of global oversupply