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Tata Steel stated that it could benefit from the planned changes to the UK steel quotas

ByArticle Source LogoSteel RadarJanuary 31, 20263 min read
Steel Radar

According to SteelRadar, the UK is expected to reduce the volume of foreign steel allowed to enter the country duty-free in order to protect its domestic steel industry. The government is reportedly considering changes to the current quota system due to global oversupply and rising protectionist trends.

In recent months, the global steel market has been affected by excess supply—particularly driven by rising exports from China—along with an increase in protectionist measures across many countries. These developments have prompted the UK to reassess its existing import framework. Under the current system, certain volumes of steel can be imported without the 25% tariff; however, these duty-free quotas are now under review. The government is said to be considering reducing these volumes to better reflect the actual needs of the UK market.

Although details have yet to be finalized, announcements regarding potential changes are expected in April, with the new system likely to come into force from 1 July. This timeline coincides with the expiration of the steel safeguard measures originally introduced by the European Union in 2018 and later adopted by the UK following Brexit.

If the quotas are tightened, domestic producers—particularly Tata Steel UK—could see significant benefits. Experts note that limiting low-priced imports would help create a fairer market environment, reduce distortions caused by excessive imports in certain product categories, and stabilize order books for domestic producers amid weak global demand. The move is also intended to prevent the UK from becoming a dumping ground for low-priced steel by aligning the system more closely with trading partners.

Tata Steel UK has stated that it is closely monitoring the process and remains in direct contact with the Department for Business and Trade to support the development of a more sustainable long-term framework. The company’s Head of International Trade and Compliance, Vlad Darahan, said the current quotas are overly generous to overseas suppliers and, in some cases, exceed total UK demand. He warned that this creates a risk of turning the country into a dumping ground for cheap imports and called on the government to implement a clearer and stricter system without delay.

Tata Steel UK officials added that the company will continue to actively participate in policy discussions to ensure that any new measures support stability, investment, and fair competition. Darahan emphasized that the company will closely follow developments and advocate for policies that secure a strong and sustainable future for the UK steel industry.

Although no final decision has yet been made, the prospect of a more balanced and protective trade framework has been welcomed across the sector. Potential changes to duty-free steel imports are expected to strengthen domestic production capacity at a critical time and provide meaningful support to companies such as Tata Steel UK as they navigate mounting global pressures.

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