The UK has announced the details of the transition period for steel safeguard measures

The UK Department for Business and Trade (DBT) has published details of a transitional phase designed to mitigate the impact of the new steel import quotas, which come into force on 1 July. In addition, the department has stated that steel imports from Ukraine will continue to be exempt from UK tariff quotas.  This is reported by IndexBox.

Under the recently announced terms of the transition period, goods imported under contracts concluded before 14 March 2026 will be fully exempt from the 50 per cent surcharge under the domestic trade defence system on imports exceeding the quota between 1 July and 30 September. This move is intended to provide some respite to businesses that have expressed concerns about the impact of the future tariff quota system on the cost of imported raw materials. The system is part of the UK government’s new Steel Strategy.

The DBT has not yet determined the volumes of future import tariff quotas for individual countries and goods. Nevertheless, importers, distributors and end-users continue to advocate for a relaxation of the proposed rules following the DBT’s announcement on 7 April of its intention to reduce the UK’s current tariff quotas by 60% from 1 July.

In its statement of 2 June, which clarifies the terms of the transition period and quota carry-over, the DBT noted that steel products cleared through customs between 1 July and 30 September 2026 may benefit from tariff exemption if they were imported under a contract concluded before 14 March. Goods covered by this transitional exemption will not be counted when allocating quotas for the period from July to September. To qualify for the exemption, traders must have confirmed evidence that the consignment was ordered before the specified deadline.

In detailing the provisions on the carry-over of unused tariff quota volumes, the DBT noted that country-specific quotas or remaining quotas would be carried over to the following quarter of the same quota year. However, this rule will not apply to Category 1 products — hot-rolled flat products and strips of non-alloy and other alloy materials intended for further processing. For the relevant categories, the carry-over of unused quotas will take effect on the 20th working day following the end of the relevant quarter. Furthermore, unused quota volumes may accumulate across different quarters of the same quota year, but any balance remaining at the end of the year will not be carried over to the following period.

Regarding the exemption of steel of Ukrainian origin from the new tariff quota regime, the DBT stated that this measure is a gesture of support against the backdrop of the ongoing Russian invasion. Meanwhile, the existing preferential tariff arrangements for steel trade between the UK and Ukraine will remain in force.

It should be noted that from 1 July this year, the volume of UK steel import quotas will be reduced by 60% compared to current arrangements, and tariffs on supplies exceeding the quota will rise from 25% to 50%. This move follows similar decisions by the EU, the US and Canada. As part of its broader strategy, the UK government aims to increase domestic production so that it can meet up to 50% of domestic steel demand (compared to the current 30%), although no deadline has yet been set for achieving this target.