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UK Unveils Steel Strategy With 50% Tariffs and Sharp Quota Cuts From July 1

The plan aims to secure critical supply by lifting domestic output toward half of UK demand with up to £2.5bn in public financing.

Overview

  • From July 1, 2026, tariff‑free steel import quotas will be reduced by about 60%, with a 50% duty applied to volumes above the new limits and a 12‑month review with quarterly rollover of quotas.
  • The government will raise the UK’s maximum WTO most‑favoured‑nation steel tariff to 50% and is exploring melt‑and‑pour origin rules to limit circumvention.
  • Up to £2.5bn from the National Wealth Fund will finance sector investment and support at sites including Scunthorpe, which the National Audit Office says is costing about £1.3m a day to sustain.
  • The strategy confirms a shift to electric arc furnaces using recycled scrap, alongside steps to secure domestic scrap supply and to channel more UK steel into renewables projects.
  • Industry groups and unions called the measures bold, while Conservatives and some economists warned of higher costs and risks to primary steelmaking; a minister said the approach is targeted rather than “Donald Trump‑style.”