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• Landmark new Steel Strategy sets ambition for up to 50% of steel used in the UK to be made in the UK, boosting production from 30%.
• UK will introduce new聽trade measure聽to聽support聽national security聽by preserving聽vital聽steel聽production聽for critical national infrastructure and defence.听
• Steel import quotas will be reduced聽with higher tariffs聽of 50%聽outside聽of quotas,聽ensuring聽the聽UK聽steel sector鈥檚 future聽in聽the聽face of global overcapacity.听聽

UK steel producers聽and thousands of聽steel聽workers from Glasgow to Port Talbot聽will聽benefit聽from a new landmark Steel Strategy as Government takes bold action to聽protect domestic steelmaking and build more resilience in the supply chain for critical national infrastructure and defence.听

On a visit to Tata Steel Port Talbot聽to meet steelworkers and launch the Strategy, the Business and Trade Secretary Peter Kyle announced the Government鈥檚 ambition to boost domestic production so that it can meet up to 50% of our domestic demand for steel, and secure the industry鈥檚 role in supporting vital UK sectors like infrastructure, defence and clean energy.听

Building on the direct financial support the government has made so far, the National Wealth Fund will be the government鈥檚 main mechanism for providing up to 拢2.5 billion of financing for investment in the steel sector this Parliament. The Steel Strategy forms a vital part of the Government鈥檚 activist and strategic approach to British industry, taking decisive action to give businesses the certainty and support they need in uncertain times and bolstering the UK鈥檚 resilience.

Today, the UK also announces that聽from 1 July 2026, overall quota levels for steel imports will be significantly reduced by 60% compared to聽current聽arrangements, and steel coming into the UK above these levels will be subject to a 50% tariff.听聽聽

The robust new measure is a vital step to protect UK steel production in the face of global steel overcapacity. It will apply to imported steel products where they聽can be made聽in the UK.

Without action, the UK鈥檚 steelmaking capability faces real jeopardy, leaving us reliant on overseas suppliers for materials essential to our energy security,聽defence聽and transport infrastructure.听聽

Business and Trade Secretary Peter Kyle said:聽

鈥淢aking steel in the UK is vital for national security, critical聽infrastructure聽and the wider economy.听Steel-making聽is a cornerstone of our modern industrial policy that deliberately focuses support for key industries, technologies, and strategically important sectors.听聽聽

鈥淲ith this strategy we are closing the decades-long chapter of destructive de-industrialisation and聽committing聽instead to strengthening and sustaining Britain as a steel-making nation.鈥澛�

The聽new聽Steel Strategy also commits to:聽

• Confirm electric arc furnaces聽(EAF)聽as the future of British steelmaking,聽continuing聽the聽shift from blast furnaces to cleaner, EAF-based production using recycled scrap to support net zero.听
• Enable offshore wind developers to include steel manufacturers in the next round of Clean Industry Bonus applications (launching this year) to maximise UK steel use in renewables.听
• Launch聽a cross-government working group to聽ensure聽a sustainable supply of scrap metal for聽UK steelmakers.听
• Task聽the Steel Council聽with聽action聽on聽workforce聽needs and聽practical research and innovation聽to boost聽productivity and competitiveness.听

Alongside the new trade measure聽being announced today, the Government will also be raising the UK鈥檚 maximum Most Favoured Nation (MFN) steel tariffs at the WTO to 50% to protect domestic industry聽in the long聽run聽from the impacts of global overcapacity.听

This approach reflects feedback from聽government鈥檚聽recent Call for Evidence, aligns with the UK鈥檚 Industrial Strategy and Trade Strategy,聽and follows months of engagement with UK steel producers and downstream industries.听聽

In tandem, the Government will explore the possibility of introducing requirements to聽identify聽where steel imports are melted and poured,聽in order to聽better understand our supply chains and ensure the UK steel industry is better protected from global overcapacity.听聽

The new measure is not about stopping steel trade: steel imports are necessary for industry and will continue. Quota allocations have been carefully designed through engagement with industry to help maintain security of supply and minimise impacts on the wider economy.

Following engagement with downstream sectors, there will be a quarterly roll-over of quotas within the year and a review of the measure after twelve months.听聽聽

The UK remains committed to working with international partners, including the European Union, with whom our supply chains are so connected, to tackle global steel challenges. The UK will also continue to work through the Global Forum on Steel Excess Capacity and take forward efforts to advance WTO reform.

Further good news for the UK鈥檚 steel sector will be unveiled later today during the Nigerian State Visit, with聽a聽substantial new deal backed by UK Export Finance worth 拢70 million,聽for British Steel to supply the refurbishment聽of two of Nigeria鈥檚 trading ports.听

Notes to editors聽

• The Government is engaging directly with affected stakeholders and trading partners.听
• We are exploring a transitional arrangement under which the new tariff would not apply to聽goods under contract agreed before 14 March and imported between 1 July and 30 September 2026. We are finalising the details to ensure it gives genuine support from unexpected costs, while still protecting the UK market from excessive聽imports.
• Read the new Steel Strategy.听
• The Steel Strategy builds on major support the Government has already put in place for the steel industry since taking office, including slashing electricity costs for producers via the Supercharger, reforming procurement rules to ensure more UK-made steel is considered for public projects and speeding up grid access for new investment projects.听聽
• Since the Government鈥檚 intervention at Scunthorpe last year British Steel has made other important progress, including hiring new apprentices and signing significant contracts, such as supplying a Turkish rail project worth tens of millions.听
• Other active government support for Britain鈥檚 steel sector and communities since taking office has included 拢500 million to support the construction of a new electric arc furnace (EAF) at Port Talbot, alongside over 拢100聽million聽of transition funding for local businesses and to retrain ex-workers.听
• The Government has also backed the Official Receiver with the funding to run a sales process for Speciality Steel UK鈥檚 sites, protecting jobs in Rotherham and Stocksbridge in the interim.听
• The up to 拢2.5 billion of funding for the steel sector this Parliament is in addition to 拢500 million already earmarked for Tata Steel鈥檚 拢1.25 billion transformation at Port Talbot, securing 5,000 jobs.听
• In 2024, nearly 40,000聽people worked across the UK steel industry, with steelmakers paying on average 32% above local average wages
• 40,000 employed in the UK steel industry sources: , and
• 32% above local average wages source:

Stakeholder quotes:

Jon Bolton, Co-Chair of the UK Steel Council, said:

鈥淭his Steel Strategy, alongside the recently published Industrial Strategy, demonstrates the government鈥檚 determination to support Foundational Industries and sets out a case for investment in the UK鈥漵 steel sector.听聽

鈥淪teel along with all industrial sectors is facing many external challenges emphasising the need to secure a competitive UK supply chain. 聽A significant demand for steel in the UK supported by a positive policy landscape, a globally recognised academic knowledge base and a skilled workforce will enable the sector to arrest its many years of decline.鈥�

Gareth Stace, Director General, UK Steel, said:

鈥淪teel underpins our national security, our energy transition, and the delivery of critical infrastructure. Yet for too long, the UK has lacked a coherent, long鈥憈erm plan to support the sector. Today鈥檚 strategy acknowledges the essential role steel plays in every part of the economy and sets out the direction needed to attract investment, boost innovation, and strengthen our industrial foundations.

鈥淭his is a crucial moment: with global markets distorted by overcapacity and subsidy, a clear and ambitious domestic strategy is exactly what is required to ensure steelmaking not only survives in the UK but thrives.鈥�

Community Union General Secretary, Roy Rickhuss CBE, says:

鈥淪ince taking office in 2024, the Government has taken many decisive steps to support the steel industry and those who work within it. This Steel Strategy represents the culmination of these efforts.

鈥淭he trade measure outlined in this Strategy represent a bold and significant step forward, strengthening our domestic industry and helping to ensure that local economies continue to benefit from a secure, resilient steel sector and the employment it provides.鈥�

Sir Andrew Cook CBE, Chairman, William Cook Holdings Ltd, said:

鈥淭he Government鈥檚 measures are a recognition of the need to defend the industry from the distortions in global markets. I welcome them, and trust that聽we can look forward to further trade defence initiatives extending to other areas of the steel industry that are badly damaged by subsidised imports.鈥�

Nick Haycock, Managing Director at Marcegaglia UK, said:

鈥淯nlike some of the steel producers, we have not had any defence for our core products until now. Our markets have been badly impacted by unfair competition and this reduction in quotas offers us an opportunity to grow our domestic market share and domesticate our supply chains. Marcegaglia UK has made major investments in recent years, and these measures will lead to further job creation in our local area.鈥�

Charlotte Brumpton-Childs, GMB National Secretary, said:

鈥淕MB had been calling for a steel strategy for a long time - so it鈥檚 good we now have some kind of plan.

鈥淭his administration has done more for UK steel than any Government for many, many years.

鈥淏ut, as ever, the devil will be in the detail and key questions around ownership of Scunthorpe and the future technology mix will be key to our members and their livelihoods.鈥�