The UK government will cut its tariff-free steel import quota by 60% starting July 1, 2026. Any steel above the revised quota faces a 50% tariff. The previous out-of-quota duty was 25%.

The measure was announced on March 19 under the Taxation (Cross Border Trade) Act 2018. It covers 20 product categories, including hot-rolled sheets, cold-rolled sheets, coated steel, rebar, and structural sections. The Department for Business and Trade published the final product list on April 2.

India sent ₹7,400 crore (USD 893.4 million) worth of steel and iron products to the UK in FY26. The new quota applies to products that can also be made in the UK, which covers the bulk of Indian flat steel and structural exports.

Once an exporter crosses the quota threshold, every additional tonne carries a 50% duty. The math changes the moment the shipment exceeds the limit.

The UK move follows the same pattern as US Section 232 tariffs on steel, aluminium, and copper, modified by President Trump on June 1. The EU is also restructuring its safeguard regime, with a proposed 47% cut to its annual import quota and a 50% out-of-quota duty by the end of 2026.

Commerce Minister Piyush Goyal met UK Business and Trade Secretary Peter Kyle in New Delhi this month. The India-UK Free Trade Agreement, signed in July 2025, is now stalled over the steel safeguard and the UK's Carbon Border Adjustment Mechanism.

The UK's full Year 8 safeguard expires on June 30. The new measure starts immediately after. Exporters with shipments arriving in July need to confirm quota status before the vessel sails. The next 3 weeks will set the playbook for Indian steel exports to the UK for the next year.