The UK government has confirmed it will strengthen existing trade protections for the steel industry, taking effect today (1 July).
The Trade Remedies Authority (TRA), the UK’s trade remedies watchdog, had recommended that the government strengthen existing safeguards, including quotas, by “slowing future increases, capping certain import levels and tightening country-specific limits”.
The TRA says the measures will prevent “spikes in foreign imports” from undercutting domestic production.
Steel strategy
Business and trade secretary, Jonathan Reynolds, said the safeguards build on last week’s Industrial and Trade Strategies, and that the government will “go further” when it publishes its upcoming Steel Strategy.
“We’ve taken decisive action to protect the UK market and level the playing field, and we’ll go further with our new Steel Strategy to build a stronger, more competitive future for British steel making central to our Plan for Change.”
Trumpian context
The TRA’s recommendations were made following a review of the existing Tariff Rate Quota (TRQ) for the sector, amid concern that cheap overseas steel could be being dumped into the UK.
These fears increased when US president Donald Trump introduced 25% tariffs on all steel imports into the US.
Reynolds consulted with industry stakeholders on the TRA’s recommendations before committing to strengthening the existing safeguards from today.
‘Right decision’
Gareth Stace, the director general of industry body UK Steel, said the government had made the “right decision” and that Reynolds had shown he was “on the side of British industry”.
“This swift move is crucial to diminishing the injury caused to domestic steelmakers by steel that is redirected away from the US market after president Trump’s steel import tariffs increase.
“We now need to back the tightened safeguards up with the comprehensive new trade defence mechanism replacing the current system when it ends next year.”
Replacement to come
As part of its efforts to protect the UK steel industry, the government has introduced 15 anti-dumping and two anti-subsidy measures on imports from seven individual countries, as well as a global safeguard measure on steel imports
The safeguard measure is due to end in June 2026 and cannot be extended, as per the UK’s legal obligations as a member of the World Trade Organization.
The government last week published a six-week call for evidence from industry into new measures that would replace the current safeguards. Stace said that UK Steel wants to support the development of the new mechanism so that it creates a “positive business environment” and encourages “private investors to enter the sector”.
The government also last week committed to “bolster our trade defence toolkit and make our trade remedies system more agile, assertive and accountable”, as part of the new Trade Strategy.
