UK Government Acts to Curb Steel Imports and Prevent Trade Diversions

The UK Department for Business and Trade has announced immediate measures to tighten steel import controls, aimed at preventing trade flow diversions—particularly following recent US tariff increases on steel.

Key Measures:

Effective 1 July 2025, the UK will:

• Limit Tariff Rate Quota (TRQ) Growth: The annual increase in TRQs will be reduced from 3% to 0.1%.

• Introduce Caps on Residual Quotas:

  • 15% cap on the residual quota for Category 4

  • 20% cap on the residual quotas for Categories 7 and 13

  • This is to align import volumes with traditional trade patterns.

• Restrict Rollover of Unused Quotas:

  • Unused quarterly quotas can no longer be carried forward to subsequent quarters.

  • Country-specific quota holders may not access residual quotas in the final quarter.

• Revise Developing Country Exemptions:

  • Based on UK import data from 1 January – 31 December 2024

  • Aligned with WTO Safeguards Agreement.

These changes follow recommendations from the Trade Remedies Authority (TRA) and are distinct from a separate consultation on a new Safeguard mechanism, which closes end of July 2025. The current Safeguard mechanism expires in June 2026 and is not renewable.