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| UK steel industry |
Reinstatement of UK Steel Quota Boosts Duty-Free Trade with the EU
From August 1, 2025, the UK steel industry regained duty-free access to the EU market for key steel products under category 17. The European Commission reinstated the UK’s country-specific quota (CSQ), allowing exports of 27,000 tons of angles and steel profiles per quarter without tariffs. This decision reverses the reduction imposed in March and reflects a reset in UK-EU trade relations post-Brexit. The quota reinstatement significantly alleviates trade barriers for British steelmakers.
Strategic Government Support Enhances UK Steel Sector Competitiveness
The UK government has concurrently strengthened its support for the steel sector through the Industry Change Plan. This includes £500 million in funding for green steel production at Port Talbot and measures to reduce electricity costs. Furthermore, the government launched a six-week consultation on future trade defense policies aimed at protecting the steel industry amid global market volatility. These coordinated efforts aim to ensure long-term competitiveness and sustainable growth for UK steelmakers.
Market Outlook and Industry Response to Renewed EU Trade Access
UK Steel CEO Gareth Stace praised the tariff removal as a critical development for the sector. The reinstated quota not only restores historic trade volumes but also supports export stability to key EU markets. Meanwhile, government plans to publish a comprehensive steel development strategy later this year will likely enhance sector resilience. As a result, industry stakeholders anticipate improved operational efficiencies and stronger trade ties with the EU, despite ongoing geopolitical challenges.
ScrapInsight Commentary
The reinstatement of duty-free steel exports to the EU signals a strategic easing of trade tensions, bolstering UK steel's competitiveness. Government investments in green steel and trade defense measures further position the sector for sustainable growth. However, ongoing global supply chain uncertainties require continuous policy vigilance.
