UK Steel’s recommendations to strengthen existing steel safeguard measures have been taken forward this week after Jonathan Reynolds, the Secretary of State, stepped in at a critical time for industry — confirming the changes which came into effect on 1 July.
He followed recommendations from UK Steel to tighten the existing steel safeguards to a 0.1% quota liberalisation, down from 3% year-on-year. This will be fundamental to diminishing the injury caused to UK steelmakers by a spike of foreign steel imports directed away from the US market after US steel import tariffs were increased.
The Government has also accepted UK Steel’s argument to implement a cap on certain import levels (known as residual quotas) and tightening country-specific limits, preventing individual countries from dominating quotas and harming domestic producers.
The Business Secretary will also implement the Trade Remedies Authority’s recommendations to prevent unused quarterly quotas from being rolled over to the following quarter and prevent countries with a specific quota from accessing residual quotas in the final quarter, in line with UK Steel’s requests.
Gareth Stace, UK Steel director-general, said: “the Secretary of State has again shown that he is on the side of British industry in following UK Steel’s calls to urgently tighten the existing steel safeguards. This swift move was 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 a comprehensive new trade defence mechanism replacing the current system when it ends next year. Implementing the new mechanism in January 2026 will help to develop the positive business environment our country craves and encourage private investors to enter the sector, ensuring we not only survive but thrive. The Government has made the right decision, in response to a tough trading environment where subsidised imports undermine domestic steel production.”