Government supports British steel calling for strengthening import safeguards amid global oversupply threat
Commerce Secretary Jonathan Reynolds has put his weight into proposals to strengthen UK steel import protection measures to step in to surpass the Trade Remedy Agency (TRA) recommended trade safeguards in response to ongoing concerns about redirecting global steel supplies.
The move, welcomed by industry leaders, is a “huge result” that the government will reduce annual liberalization of steel quotas from 3% to just 0.1%, aligns the UK’s attitude with that of the EU and helps block domestic producers from a surge in cheap imports, especially as the U.S. president imposes new tariffs on U.S. President Donald Trump.
Reynolds confirmed in a letter to Tra chairman Nick Baird that the government will also introduce a cap on the remaining quota to prevent countries from dominating the UK imports and damaging the competitiveness of British steel manufacturers. The Secretary of State further supports the TRA’s recommendations to prevent unused quarterly quotas from rolling and to prevent country-specific quotas from gaining the remaining amount in the last quarter.
The industry-leading trade body, UK Steel, lobbied as more and more difficult measures as global oversupply (intensified US protectionism) could lead to a large amount of cheap, state-subsidized steel entering the UK market.
“This is a huge result and a demonstration of the Secretary of State’s commitment to our industry,” said Gareth Stace, UK Steel Director. “These measures will relieve the pressure on the steel transfer in the United States and the EU and prevent countries that flood the international market with unsustainable cheap steel and shut down our steel manufacturers.”
The industry sees enhanced safeguards as essential to defend the remaining steelmaking capacity of the UK, which produces more than 33,000 people and supports key supply chains for construction, automobiles, defence and energy.
Steus added that the measures must now be based on long-term reforms, calling on the government to introduce new trade defense mechanisms when current safeguards expire. “This should be done in January. The upcoming trade strategy has the potential to issue new legislation that will protect our companies from the tools needed to protect our companies from the current overflow of steel at unsustainable price levels.”
The announcement comes at a time of great pressure on the global steel market. President Trump’s new wave of tariffs has prompted fears of redirecting supplies, especially from China, Türkiye and India, that could overwhelm smaller markets like the UK.
Industry insiders say Reynolds’ interventions show a shift in tone in the new Labour government, which suggests a more aggressive interventionist approach to strategic industrial sectors such as steel.
The Ministry of Commerce and Trade said more details on trade strategies will be released later this summer, including potential legislative proposals to strengthen UK trade defenses.
