Calls are growing for revisions to be made to the proposed changes to the UK’s steel tariff-rate quota (TRQ) allowances, Kallanish learns from market players.
Gareth Stace, director general of UK Steel, tells Kallanish he is “almost certain” there will be changes to the import quota levels in the final determination.
“The whole purpose of publishing these provisional measures is to invite feedback and representation from market players and organisations. This process ensures that the final numbers will more accurately reflect the import levels needed across the many different categories,” he says.
UK Steel, among others, continues to engage with the Department for Business and Trade (DBT) after the announcement of the proposals back in March. The construction and manufacturing sectors have also been seeking alterations, with numerous letters written by the British Construction Steelwork Association (BCSA) and the Confederation of British Metalforming (CBM).
The British Chambers of Commerce (BCC) has also issued warnings over rising manufacturing costs, while the Construction Leadership Council confirmed a government meeting had taken place in April to discuss concerns.
These changes are already pushing up prices for flat products, with a substantial rise already seen on UK HRC. For many buyers, it comes at a time of tepid demand and elevated costs due to the Middle East conflict.
A petition, created by Giles Throup of Coker Engineering, with suggested quota changes has gathered more than 1,500 signatures in less than a week. Throup tells Kallanish he hopes the petition acts as a spotlight to give more weight to the argument for adjusting quotas, and increases visibility of the problem. He adds that SMEs in the UK often lack a voice despite being exposed to just as much risk as the bigger companies.
He also notes that for some steel products there “aren’t even the capabilities to manufacture in this country but the commodity codes are on the list”. Throup also highlights the lag between bringing idled capacity online and the material coming onto the market.
A government spokesperson tells Kallanish: “The new steel trade measure aims to strike the right balance between protecting UK steel production and maintaining secure supply. We continue to take feedback from industry, including UK Steel and CBM, on it to ensure the best outcomes to protect UK industry, and we will also conduct a formal review after 12 months to ensure it remains effective.”
The DBT has previously said it would explore a transitional arrangement under which the new tariff would not apply to goods under contract agreed before 14 March and imported to the UK between 1 July and 30 September 2026.
However, importers say they do not feel the government is listening to their concerns, or understands the impact they are facing. A growing area of concern are steel derivatives and the circumnavigation of the new quotas. The BCSA says the exclusion of fabricated steelwork from the quotas is a “glaring omission”.
At the same time, the EU is preparing to reduce its own TRQs, causing concern for UK exports. Stace has previously expressed concern over this, as 80% of UK exports go to the region. These negotiations are believed to also be ongoing.
