Announcement

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After some recent amendments to previous trade announcements, which we detailed in this article: BKR Website, the UK Government has confirmed that from 1 July 2026, the rules around bringing steel into the UK are changing significantly. The Government has confirmed a new steel trade measure that cuts the amount of steel that can enter the UK free of duty, and sharply increases the cost once that allowance runs out.

If your business imports steel, or sits anywhere in a supply chain that depends on it, it is important to review this new information.

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What is Actually Changing

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From 1 July 2026, the Government is reducing tariff free quotas across 20 steel product categories by 51% compared with the existing quotas. These categories cover a wide range of steel products falling under Chapters 72 and 73. Each quota is allocated quarterly and shared out by country of origin, with HMRC granting access on a first come, first served basis. Once a quota for a category is used up, a 50% tariff applies to any further imports in that category for the rest of the quarter, calculated on the value of the goods before any other import charges are added.

There is also a possible transitional arrangement for goods that were under contract before 14 March 2026 and are imported between 1 July and 30 September 2026. The Government has said it is still finalising the details; however, we anticipate this will be a 25% tariff, as opposed to the 50% tariff applied to out of quota goods.

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Who this affects

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This is not limited to steel producers or traders. Any business that imports steel products falling within Chapters 72 and 73 of the trade tariff, or buys from a supplier who does, has an interest here. That includes manufacturers, construction firms, fabricators and engineering businesses, particularly those relying on imported products that are not readily available from UK mills.

Even if you do not import steel directly, it is worth checking whether your suppliers do, since the cost of these changes will likely be passed down the chain.

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What to do now

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We are working with a number of businesses to evaluate the impact of this announcement and help maximise the use of potential quotas. We are also working with a number of businesses to apply for customs warehousing and authorised use as a way to maximise the use of quotas. Importantly, these applications and processes take time to apply for and implement; as such, you must act quickly. If you think your goods may be affected by these changes, or you simply want to talk through what they mean for your business, get in touch with the team at BKR. We can help you check your classification, work out your exposure, and look at whether procedures and processes can reduce the impact of these new tariffs.

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Want the full picture

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We covered the policy background and a more detailed breakdown of the changes, including the scale of the quota cuts and what they mean commercially, in our earlier article, Raising the Bar for Steel Imports. You can also read the government's official notice in full on GOV.UK, including the full list of affected commodity codes and quota tables by country.