The change, reported by The Guardian over the weekend, could mark a major shift in support of Britain’s domestic steelmakers at a time when global market pressures are intensifying.

With a worldwide oversupply of steel, particularly driven by increased exports from China, and many nations adopting tougher protectionist measures, the UK is reviewing its own system to ensure a fairer competitive landscape. The current regime allows specific volumes of steel to be imported into the UK before a 25% tariff applies. These tariff free quotas are now under examination, with the government considering a reduction that would better reflect real UK market needs.

Although details are still being refined, potential announcements could be expected in April, ahead of implementation from 1 July. This timeline aligns with the expiry of the UK’s current post Brexit steel safeguard measures, originally introduced by the EU in 2018.

If tariffs are tightened, the impact for Tata Steel UK, and the wider domestic industry, could be significant:
•    A more level playing field as UK steelmakers compete against heavily discounted imports.
•    A reduction in market distortion, where current quotas sometimes exceed total UK demand in certain categories.
•    Increased opportunities for domestic supply, potentially stabilising order books at a time of weak global demand.
•    Closer alignment with trading partners, helping the UK avoid becoming a destination for diverted low priced imports.

Tata Steel UK has taken a proactive stance throughout the process, engaging directly with the Department for Business and Trade to help shape a system that supports long-term sustainability.

Vlad Darahan, Tata Steel UK's Head of International Trade and Compliance, emphasised the importance of reform: 

“Current UK quotas are too generous to overseas suppliers and in some cases higher than total UK demand. This risks turning the UK into an unfair dumping ground for cheap imports. We are urging the government to move quickly to introduce a clearer, stricter system that matches real UK needs while maintaining a constructive trading relationship with the EU.”

Tata Steel UK continues to actively participate in policy discussions to ensure that any new framework supports stability, investment and fair competition.

Vlad added: “We will keep closely monitoring developments and continue advocating for measures that enable a strong and sustainable future for Tata Steel UK and the wider British steel industry.”

While confirmation is still pending, the prospect of a more protective and balanced trade environment has been widely welcomed. Any changes to tariff free steel imports could help reinforce the UK’s domestic manufacturing base at a critical time – offering a timely boost for businesses like Tata Steel UK that are navigating complex global pressures while investing heavily in the industry’s future.