UK doubles steel tariffs and slashes quota, complicating India‑UK trade talks

The UK government will halve the tariff‑free quota for imported steel and double duties on all non‑quota steel to 50%, part of a strategy to revive domestic production and align with recent US and EU measures. The British Chambers of Commerce warned that the tighter quotas and higher tariffs will cause “immediate hardship” for downstream sectors such as construction, engineering and carmaking, urging a longer transition period.

The policy change has become a sticking point in negotiations between India and the United Kingdom, as both sides seek a solution that protects their respective industries while preserving the broader India‑UK trade agreement. The tariffs and quota cuts also follow the recent nationalisation of British Steel and broader efforts to boost UK steel capacity.

Industry leaders argue the moves risk raising costs, disrupting supply chains and pushing firms toward less sustainable producers, while the government maintains the measures balance protection of domestic steel with secure supply.