Committee publication · Correspondence · 16 June 2026
Letter from the Minister of State for Trade relating to steel trade measures, 15 June 2026
From: Business and Trade Committee
Inquiry: Industrial Strategy
Summary
Minister of State for Trade Sir Chris Bryant responds to Business and Trade Committee Chair Liam Byrne's concerns about the government's new steel trade measure announced to address global steel overcapacity. The letter defends the 50% tariff rate, quota methodology, and immediate implementation while acknowledging downstream industry impacts and committing to a 12-month review.
Key findings
- New steel trade measure introduces 4 additional product categories (stainless steel, wire, bright bar) beyond the current Steel Safeguard to strengthen UK domestic steel production capacity.
- Government has set 50% tariff rate on imports above quotas, aligned with US (4 June 2025), Canada (1 August 2025), and EU (1 July 2026) levels to prevent trade deflection.
- Quotas cover some products not currently manufactured in UK due to technical constraints at 8-digit tariff code level; more granular codes risk circumvention through downsizing imported products.
- Measure includes transitional exemption: goods under contract before 14 March 2026 and imported 1 July–30 September 2026 are exempted from the new measure.
- Government committed to 12-month review of the measure and targets 40–50% of domestic steel demand met by domestic production, while recognising imports remain important.
Tone
ProceduralTopics
Key actors
Sir Chris Bryant MP, Liam Byrne MP, Department for Business and Trade, UK steel producers, Downstream manufacturers, Trade Remedies Authority, European Union, United States, Canada
Notable line
“Without this decisive action, we would endanger the UK's ability to produce steel leaving us dependent on overseas suppliers, including for materials needed for defence and critical national infrastructure sectors, such as energy and transport.”
Key Quotes
“The new steel trade measure has been announced to address the impact of global steel overcapacity, which continues to distort markets and threaten the viability of UK steelmaking.”
“We have seen other nations move to a 50% tariff level on steel – the US as of 4 June 2025, Canada as of 1 August 2025 and the EU will do so from 1 July”
“Without this decisive action, we would endanger the UK's ability to produce steel leaving us dependent on overseas suppliers, including for materials needed for defence and critical national infrastructure sectors, such as energy and transport.”
“Global steel overcapacity poses and existential and escalating threat to our domestic steel sector, which means we cannot afford to delay our actions.”
“The steel strategy aims to have 40-50% of steel domestic demand met by domestic production.”
“Overall, we have seen how a lack of support for steel-making in the UK over many years has created a knife-edge position where the UK could have been the first major nation without the ability to make steel.”
Source · parliament.uk record ↗