Around 85% of India's steel exports to the UK will be exempt from the new safeguard measure under the India-UK Free Trade Agreement. The exemption was confirmed in mid-June, days before the safeguard takes effect on July 1.

This resolves weeks of tension. The UK announced on March 19 that it would cut tariff-free steel quotas by 60% and charge a 50% duty on anything above the limit. India's steel exports to the UK were worth ₹7,400 crore (USD 893.4 million) in FY26, and the cut threatened a large share of that.

India pushed for a quota matching its three-year average of exports to the UK, roughly USD 900 million. Commerce Minister Piyush Goyal met UK Business and Trade Secretary Peter Kyle in New Delhi to break the deadlock. India had signalled it would withdraw concessions on UK goods, including Scotch whisky, if the steel issue remains unresolved.

The FTA exemption now shields the bulk of Indian steel from the safeguard. The remaining 15% still face the quota and the 50% over-quota duty.

The UK measure mirrors a global pattern. US Section 232 Tariffs on steel, aluminium, and copper were modified in June

The India-UK FTA, signed in July 2025, aims to double bilateral trade to USD 120 billion by 2030. Steel was the last major blocker to implementation.

The safeguard starts July 1. Exporters shipping the exempt 85% gain a clear cost advantage over steel from countries without an FTA. The window to lock UK buyers is now open.