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India and UK Pursue Creative Fix to Steel Safeguard to Launch Trade Pact

A new UK steel quota and tariff is holding up the deal's start.

Overview

  • India’s commerce secretary said Friday the two sides are crafting a “unique, creative” workaround to Britain’s new steel limits so the 2025 trade pact can start soon.
  • The UK plan taking effect July 1, 2026 cuts tariff‑free steel quotas by 60% and adds a 50% tariff on shipments above the cap.
  • Officials said this measure was not part of the talks and it has become the key sticking point to setting an entry‑into‑force date.
  • The pact signed on July 24, 2025 would let 99% of Indian exports enter the UK duty‑free and would lower Indian tariffs on British goods such as cars and whisky.
  • India sold $893.4 million of iron and steel to the UK in 2025–26 out of $13.4 billion in total goods, showing why the tighter cap is pressing for mills and traders.