Tata Steel warns final steel quotas risk UK investment and jobs

Posted 26 June, 2026
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Image: Tata Steel

Tata Steel UK has responded to the Government’s final steel quota framework announced on 25 June 2026.

On 19 March 2026, the government announced a new steel trade measure, taking effect from 1 July 2026. This measure will be implemented using powers in the Taxation (Cross Border Trade) Act 2018, as amended.

From 1 July 2026, the government will limit tariff-free steel imports, reducing overall quota volumes by 51% compared with the steel safeguard measure. Any imports above these levels will face a 50% tariff. The measure will apply to imports of steel products that can be made in the UK. The steel safeguard quotas and the 25% additional safeguard duty will cease to apply after 30 June 2026.

Rajesh Nair, CEO of Tata Steel UK said: “A sustainable domestic steel industry depends on a policy framework that supports investment, protects jobs and provides a level playing field for UK steel producers. Steel remains a strategically important foundational industry for the UK economy and wider manufacturing base.

“We do not believe the final quota levels published today reflect UK market conditions or the pressures facing the domestic steel industry. In several categories, the quota volumes continue to allow significant import penetration into strategically important UK steel markets, exposing domestic production and supply chains to continued pressure.

“If the Government’s ambition of building a sustainable steel industry capable of supplying 50% of UK demand is to be realised, quota arrangements will need to provide adequate support for domestic steel producers and support the long-term growth of the UK steel sector.

“We are disappointed by elements of the final framework announced today and we are very concerned about the implications for the long-term competitiveness, sustainability, growth and future investment outlook for the UK steel sector.

“We expect the Government to reconsider aspects of the framework and continue working with the UK steel sector to ensure a level playing field that supports domestic production, protects employment and strengthens the wider UK manufacturing supply chain.”

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