Planned tariffs on steel imports into the UK look set to be modified following industry feedback, as the government looks to balance the need to protect British producers with the desire to reduce costs for business.
In trade deal news, the EU has continued its global diplomatic and trade offensive with a series of agreements signed with South Korea.
UK steel tariffs
The UK’s proposed changes to the steel tariff regime look to be shifting, only weeks ahead of the deadline.
The Guardian reported yesterday that ministers are expected to drop some of the planned tariffs on steel imports, following lobbying from manufacturers. Certain industries and products are now expected to be exempted from the new measures.
In March, the Department for Business and Trade (DBT) announced that it was reducing the quota of tariff-free steel imports into the UK by 60% and increasing the tariffs by 50%. The date for these changes is 1 July – the same day that the EU is also making similar changes.
The trade body UK Steel said that it supported these changes to the quota, saying that the planned measure was always provisional.
UK Steel Director General Gareth Stace said: “The announcement of this measure has already led to a number of UK steelmakers ramping up capacity, creating jobs, and reshoring supply chains in this critical industry.
“We are also clear that the UK needs to follow the route of our allies the US and Canada and extend these measures to steel intensive manufacturing industries.”
Metals companies and associations around the world have long complained of Chinese oversupply harming domestic industries.
The Organisation for Economic Cooperation and Development (OECD) estimated in November 2025 that steel overcapacity could surpass 680m metric tonnes, the highest since 2009. China remains the dominant producer of steel, and exports more than any other nation even produces, according to stats provided by UK Steel to Global Trade Today.
A DBT spokesperson told GTT:
“We want a thriving steel sector in the UK, which is why our new steel trade measure aims to strike the right balance between protecting domestic production and maintaining a secure supply.
“We always said we would take feedback from industry about the measures and conduct a review after 12 months to ensure it remains effective and that’s exactly what we’re doing.”
EU-South Korea deal
The EU and South Korea have signed a new agreement on digital trade, with both sides claiming the deal will bolster their “strategic partnership”.
At their 11th summit held in Brussels yesterday (10 June), the presidents of the European Commission (EC) and European Council, Ursula von der Leyen and António Costa, met with the South Korean President Lee Jae-Myung, where the three signed a series of ‘strategic’ agreements.
Von der Leyen said that the two were “working together to strengthen economic security and drive innovation.”
The agreements included a digital trade agreement and an expansion of a strategic defence partnership, as well as progression on areas like industrial policy, mutual recognition of qualifications and standards, and energy security.
Politico reported that the UK was also progressing on a critical minerals deal with South Korea, as both countries looked to protect their supply chains from Chinese dominance.
Minister resigns
Defence minister John Healey has resigned, saying that the Treasury has not given the military the money it requires to meet the UK's defence needs
"The Treausry has been unwilling, to commit the resources that the nation needs to defend the country at this time of rising threats," Healey said in his resignation letter, addressing prime minister Sir Keir Starmer.
"As I've outlined to you, there are credible ways of meeting the mid-term funding challenges, working multi-nationally and as other European nations are doing, to allow us to protect our ability to deliver the missions of our Labour Government."
GTT reported that negotiations between the treasury, cabinet office and defence ministry had continued yesterday over the long awaited Defence Investment Plan.
Triple hit for shipping?
Three shippers have been killed in a US attack on an oil tanker, as tensions continue in the Strait of Hormuz.
The Palau-flagged MT Settebello was attacked by US military last night. US Central Command (Centcom) said that it had “disabled” the tanker after “the crew repeatedly failed to comply with directions from American forces”. The three victims of the attack were confirmed as Indian nationals by India's shipping minister Sarbananda Sonowal.
Sonowal called the incident “deeply unfortunate” and confirmed that the bodies had been located and identified. The Indian government has summoned the deputy head of the US mission to India.
International Maritime Organization secretary general Arsenio Dominguez said he strongly condemned “any act from any party that endangers the lives of seafarers and the safety of international shipping,” calling it “simply unacceptable”.
Yesterday's attack amounted to the second time this week that an Indian vessel was hit by US forces, with Centcom confirming that the Marivex had been struck and disabled for purportedly running a blockade of Iranian ports. A third ship, the Jalveer, has since reported been struck, with all crew reported as safe.
Iran’s military said that it was closing the Strait of Hormuz today, warning that any vessel moving through the waterway would be shot at. Both Iranian and US forces continue to exchange fire, following the downing of a US helicopter in the Hormuz, while commercial shipping has increasingly resorted to ‘dark’ transits through the strait.
Also in the trade news
- DBT has announced that former energy executive, Parminder Kohli, will serve as new CEO of the Office for Investment
- US President Donald Trump has threatened to not renew his country’s trade deal with Mexico and Canada
- French President Emmanuel Macron is expected to speak to Chinese officials today about “macroeconomic imbalances”
Yesterday in trade
- Officials in the Cabinet Office, Treasury and Ministry of Defence were locked in last-minute negotiations over the 10-year defence investment plan
- The EC proposed its latest package of sanctions against Russia, targeting financial institutions, drone manufacturers and oil refiners
- The Trump administration has processed more than half of the US$166bn of tariffs refunds but is now resisting refunding many of the remaining claims
