Steel Trade Measure

Judith Cummins Excerpts

Thursday 25th June 2026 Commons Chamber

[The Minister for Trade (Chris Bryant)]

With your permission, Madam Deputy Speaker, I wish to make a statement on our steel trade measure, which will come into force on Wednesday 1 July.

Let me start with first principles. The UK needs a strong steel sector, both in production and downstream, but the whole sector is facing an existential moment. Fifty years ago, the UK produced 27 million tonnes of steel a year, and even in 2010 we produced 12 million tonnes, but in 2024 we produced just 4 million tonnes and met just 30% of UK steel needs.

No Government can or should ever accept such a sharp decline in an industry that forms the backbone of so many other sectors, including defence. We promised that, in government, we would do two things in tandem. First, we promised to launch a steel strategy to tackle all the key issues facing the sector in the round. That strategy, which we published on 19 March, includes up to £2.5 billion of Government investment on top of the £500 million pledged for steelworks at Port Talbot, plus active support for this energy-intensive sector through the British industry supercharger. Secondly, we said that we would introduce a robust new steel trade measure that secures the future of the UK’s steel industry, to protect our ability to produce steel for defence and critical national infrastructure. Today, I will address the latter point.

Why do we need the steel trade measure? A key part of the existential threat to UK steel production is global overcapacity, a lack of transparency about international subsidies and artificially depressed global prices, all of which price UK steel out of the market. For the past eight years, UK steel production has enjoyed some protection thanks to the UK’s steel safeguard, which it inherited from the EU. That allowed us to protect categories of steel manufactured in the UK with quotas and a 25% out-of-quota tariff. That protection, which was introduced by the previous Government, was clearly not sufficient, as our steel sector has continued to suffer. In the seven years under the safeguard, up to 2024, steel production has continued to fall by 3.3 million tonnes—a stunning further 45%.

We now face a key moment. That safeguard must legally expire on 30 June, as World Trade Organisation rules firmly prevent an extension of a safeguard beyond eight years—it is precisely the same for the EU. If we put nothing in its place, our steel production sector will lose all its protection. That would not just bring our steel industry to its knees; it would kill it completely. That is why I promised the House that I would not allow a gap between the expiry of the safeguard and the implementation of our future steel trade measures. We are making good on that promise today.

There is an additional concern. Canada, the United States and the EU have already put in place similar toughened measures to protect their industries, so if we do nothing, or if we delay the introduction of new measures, we will immediately become the global dumping ground for cheap steel from across the world. Again I say: that would mean the end of UK steel production. That is why we must take similar action to the European Union, which announced its measure on 7 October last year. Earlier this year, we committed to introduce a 50% out-of-quota tariff on imported steel, and in April we published provisional quotas for several key categories of steel. This measure needs to work not just for our steel producers but for our manufacturers, who depend on steel—those who source it from the UK and those who source it from abroad. Our aim is solely to protect categories of steel that we produce in the UK, so we have deliberately excluded many categories from the measure. To be absolutely clear, nearly three quarters of UK steel imports by value, and 53% by volume, are out of scope of this measure.

Today I announce the final design of our steel trade measure, which will take effect on the same day as the measures imposed by the European Union. The total quota volume will now be 3.2 million metric tonnes. That is an increase of over 560,000 metric tonnes of steel that can be imported tariff-free compared with the provisional volumes that we announced—a significant 21% uplift. Today’s announcement includes the final quotas in each category. Having listened to Members and industry, we have increased the quotas in several instances so as more accurately to protect categories of steel that are manufactured in the UK.

Some of the changes reflect the fact that the European Union remains our largest export market for steel and that we have highly interconnected supply chains. Since we announced our measure in March, we have engaged intensively with the European Union and UK industry. We have reached a mutual outcome with the EU as a result of those discussions. On our side, we will increase the EU’s quota access from the announced 1.58 million tonnes to 2.08 million tonnes, and the EU will announce quotas under its own measure shortly. That will provide stability for UK-EU steel trade from 1 July while we continue to work together to strengthen UK-EU steel trade in the longer term. We have also worked closely with our international partners, and we are committed to constructive engagement with them on our steel measure. We will continue to prioritise working with our partners to tackle overcapacity.

I want to be very honest with colleagues: there are tough trade-offs here. We are determined to ensure that steel continues to be forged and made in the UK by proud steelmaking communities across the UK—in Port Talbot, Motherwell, Scunthorpe, Sheffield and on Teesside. The Labour movement was forged in these communities, just as steel was, and we will not let them down. But we know that businesses will sometimes need to find specialised steel that we simply cannot procure in the UK. In those cases, quotas have been designed to allow for imports and to ensure continued availability for UK businesses without unnecessary additional costs. To ensure continuity within supply chains for business, we are also introducing a transitional arrangement. That means that our new trade measure will not apply to steel under contract before 14 March, and imported between 1 July and 30 September. We will conduct a review after 12 months and actively monitor implementation of the measure from day one to ensure that it operates as intended and remains responsive to emerging evidence and stakeholder feedback.

There are some who think that steel is an industry of the past. Others think that the market alone should provide—“Just buy it as cheap as you can, whatever the cost to British industry.” I could not disagree more, because I know how that script runs. We buy cheap this year and next year, and maybe for a decade. Unable to compete, our national steel industry dies in the meantime. Every single UK steel mill closes. Then suddenly, miraculously, the global price rockets up, and we have nowhere to turn because we are caught in a trap of our own making. I fully understand the concerns of those who worry about this measure, and will seek to address them, but I say to them that this is in the interests of the whole sector—producers and users alike.

Finally, I will be hosting a drop-in surgery for Members on Monday 29 June from 3.15 pm to 5 pm, where colleagues can meet with me and officials to discuss any concerns and to understand the impact of this measure on the particular businesses in their constituency. I hope that will be of convenience to Members.

I would especially like to thank my officials, including Beth Sedgwick, Malte Werner and Chris Taylor, and the wonderful Lola Oates in my private office, for all the work they have done on this. I commend this statement to the House.

[Madam Deputy Speaker (Judith Cummins)]

I call the shadow Secretary of State.

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[Chris Bryant]

That is an extremely well made point. Gun barrel manufacturing is being done in the UK again thanks to a Sheffield Forgemasters contract that has been secured. We need to bring more of these categories back into UK production. I am happy to meet my hon. Friend. She might want to come along to the surgery that I am doing on Monday afternoon with officials. If she wants to talk to me, she knows how to find me. She is absolutely right that we need to increase the total quantity of steel that we are producing in the UK, protect what we are already doing and find new areas where we can produce steel. We will never do that unless we introduce tough protections in trade measures to deal with the problem of global overcapacity.

[Madam Deputy Speaker (Judith Cummins)]

I call the Lib Dem spokesperson.

[Lisa Smart (Hazel Grove) (LD)]

I am grateful to the Minister for advance sight of his statement. Steel matters. It matters for our national security, our defence and our critical infrastructure, and it sustains jobs right across the United Kingdom. British Steel supports thousands of jobs and over a billion pounds of economic activity through its own operations and supply chain. It also underpins hundreds of thousands more jobs and several billion pounds of activity across the industries that depend on it. It has been battered by Trump’s trade war and by years of unfair practices from China.

Steel is an industry worth defending, and Liberal Democrats support that goal, but we have been vocal about our concerns regarding the impact of the Government’s proposed tariffs on downstream manufacturers. Downstream steel-using industries employ 300,000 people, including some of my Hazel Grove constituents. A blanket approach risks weakening a far larger manufacturing jobs base while doing little to protect British steel.

I am pleased that the Government have listened to our concerns and to those of industry. The quota increase and product code removals are positive steps, so I have just three questions. First, categories 14 and 27 cover specialist steels required by aerospace, defence, Formula 1 and precision engineering, which cannot be sourced domestically in the required grades and volumes. Do those categories fall within the 11 product codes that have been removed from the arrangements? Secondly, the transitional arrangements only protect contracts signed before 14 March. What protection exists for manufacturers who have signed contracts in good faith between March and today? Thirdly, the WTO process will begin in the autumn. Will the Minister confirm that any permanent tariff increases resulting from that process will not permanently lock in higher tariffs on specialist steels that cannot be sourced domestically?

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[Andrew Griffith (Arundel and South Downs) (Con)]

On a point of order, Madam Deputy Speaker. I know that in a former life, the Minister was punctilious about standards in this House, so I seek your advice as to how he may correct the record. He referred to a letter that I believe he said his office had received this morning or yesterday. In fact, the Department will have received copies of two letters, one which was sent a week ago, not on my behalf, but on behalf of hundreds of thousands of small manufacturing businesses that were desperately worried, with one week to go before the tariffs. There was a second letter on Tuesday, jointly from me and the shadow Defence Secretary, my hon. Friend the Member for South Suffolk (James Cartlidge), again, sent on behalf of this vital industry, which keeps us all safe. I have not yet received a reply to either of those. I would not necessarily have expected to, but it would not be right for the record to reflect that he had only received the letter this morning.

[Madam Deputy Speaker (Judith Cummins)]

I thank the hon. Gentleman for his point of order. The Minister is in his place and may wish to respond.

[Chris Bryant]

Further to that point of order, Madam Deputy Speaker. I am grateful for the correction. I am terribly sorry; I was only referring to the latter letter. We have had a lot of letters on this, and I appreciate that lots of Members have written to Ministers about it. We tried to respond as quickly as we could, once we had settled the final quotas. I wanted to come to the House to be clear on precisely what we have done, in order to meet some of the concerns. I do try to answer my letters as punctiliously as I can. You do not have to have been a priest in the Church of England to do that, though God is working Her purpose out, as year succeeds to year.