The UK government is cutting the volume of steel imports eligible for zero tariffs by half, a move designed to shield domestic manufacturers from a surge of low-cost Chinese metal.

Imports exceeding the new, reduced quota will face a duty rate that doubles the previous level, marking a significant tightening of trade policy in the industrial metals sector.

This policy shift underscores the intensifying pressure on European steelmakers, who have long argued that subsidized Chinese production undermines fair competition.

The adjustment aligns the UK’s approach with recent protective measures adopted by the European Union, which has similarly restricted tariff-free access to address market distortions caused by global overcapacity.

By synchronizing with EU limits, London aims to prevent trade deflection, where exporters might otherwise route goods through the UK to bypass stricter continental barriers.

This policy shift underscores the intensifying pressure on European steelmakers, who have long argued that subsidized Chinese production undermines fair competition.

The reduction in duty-free allowances is expected to raise costs for importers relying on cheap Chinese supply, potentially redirecting procurement toward domestic or regional sources.