Application of the UK’s Steel Safeguard

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HCWS752

Application of the UK’s Steel Safeguard

Statement made on 30 June 2025

Statement UIN HCWS752

Statement made by

Jonathan Reynolds

Secretary of State for Business and Trade

Labour

Stalybridge and Hyde

Commons

Statement

On 28 February 2025, the UK’s Trade Remedies Authority (“TRA”) initiated a review of the steel safeguard measure. The review assessed whether exemptions afforded to developing countries should be updated to reflect recent trade flows and whether the allocation of the tariff-free quotas across all 14 product categories were appropriate to ensure the overall effectiveness of the measure.
During the review, the TRA considered evidence from both domestic and international industry and organisations. After careful consideration of the facts, they recommended to me on 9 June 2025 that developing country exemptions should be updated and that certain changes should be made to the allocation of the tariff-rate quotas.
I have considered the evidence contained within the recommendation made by the TRA and wider matters in the public interest, including the UK’s obligations under the relevant World Trade Organization (WTO) Agreement. As a result of these deliberations, I have decided to reject the TRA’s recommendation and take a different decision. The reason is to ensure the overall effectiveness of the UK’s steel safeguard measure for domestic producers whilst balancing the need for security of supply for the UK market.
I have decided to:
Increase the overall volume of each category’s tariff-rate quota by 0.1% from 1 July 2025.
Apply a 15% cap in the residual quota of category 4 and a 20% cap in the residual quotas of categories 7 and 13 to ensure that UK imports from exporting countries are more closely aligned with traditional trade flows, effective from 1 July 2025.
I have also decided to amend the allocation of the tariff-rate quotas as below, in line with the TRA’s recommendation:
Prevent any unused quarterly quotas from being made available in the following quarter.
Prevent WTO Members with a country-specific quota from being able to access the residual quota in the final quarter.
Update developing country exemptions based on UK import data for the period 1 January 2024 to 31 December 2024 and in line with the WTO Agreement on Safeguards.
This Government is unapologetic in our support for the steel sector. It is fundamental to Britain’s industrial strength, our security and our identity as a primary global power. We will not allow UK interests to suffer. Through these measures we are not only supporting our producers but also the thousands of families that depend on them and the supply chains reliant on high quality UK made steel.
We are determined to reverse the years of decline and neglect in the steel industry, caused in a large part by global excess capacity and market distortions. We will continue to take effective action, and we will publish our Steel Strategy later in the year. The strategy will bring everything together to set an ambitious vision for the sector and a more competitive business landscape.
The decision on the steel safeguard will come into effect from 1 July 2025. The government will publish a public notice on 30 June 2025 to give effect to these decisions to enter into force on 1 July.

Statement from

Department for Business and Trade

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This statement has also been made in the House of Lords

Department for Business and Trade

Application of the UK’s Steel Safeguard

Baroness Jones of Whitchurch

Parliamentary Under-Secretary of State (Minister for Legislation)

Labour, Life peer

Statement made 30 June 2025

HLWS752

Lords