Category 4 Steel Imports: Tariff-free Quotas

Lord Hunt of Wirral Excerpts

Wednesday 22nd July 2026 Lords Chamber

Asked by

[Lord Hunt of Wirral]

To ask His Majesty’s Government what plans they have to set out details of changes to tariff-free quotas for category 4 galvanised steel imports and; what assessment they have made of the impact of those changes on (1) domestic steel production, (2) employment, (3) investment and (4) supply chains.

[The Parliamentary Under-Secretary of State, Department for Business and Trade (Lord Leong) (Lab)]

My Lords, before I respond to the noble Lord’s Question, I first want to say that in the last couple of weeks, we have been seeing each other across the Dispatch Box quite regularly, and it is arousing some suspicion from my wife.

I welcome the opportunity to respond to the noble Lord’s question. On 1 July 2026, the steel trade measure came into force, and I presented the details to this House on 30 June. The measure limits tariff-free steel imports, including for category 4, and reduces overall quota volumes by 51%, compared to the expired steel safeguard, to 3.2 million tonnes. Any imports above these levels will face a 50% tariff. The details of this measure have not changed since my Statement on 30 June.

[Lord Hunt of Wirral (Con)]

My Lords, we should not have had to read in the Financial Times earlier this week that the Government had made specific changes to the steel tariff regime for a particular country, India, following negotiations over one of the United Kingdom’s most important trade agreements. I welcome the opening words of the Minister, and I always enjoy exchanges with him in this Chamber. But Parliament should surely not be learning from the media that the Government have made specific changes to the steel tariff regime for any particular country following negotiations over one of the United Kingdom’s most important trade agreements.

The Ministerial Code is clear that major policy announcements should be made first to Parliament when Parliament is in session. Will the Minister explain why Parliament was not told the full details of any further India-related changes before the tariff regime came into force on 1 July, and will the Government now commit to making a Statement while your Lordships’ House is in session, setting out what changed, why it changed, and what assessment was made of the impact of these changes on domestic steel producers, downstream sectors, exporters, supply chains, investment and jobs?

[Lord Leong (Lab)]

My Lords, I will just say to the noble Lord that it was a pretty good try. First, there has been no change to India’s category 4 quota compared to the provisional quota published in April 2026. We did not negotiate quotas with any countries apart from our agreed outcome with the EU. We have been engaging with India on steel, as we have all our trading partners. Overall, quotas reflect the need to balance stronger protection for UK producers with continued access to critical inputs for downstream sectors and critical national infrastructure.

--- Later in debate ---

[Lord Leong (Lab)]

My Lords, as it stands, the Government fully recognise the importance of ensuring that businesses can obtain the materials they require. That is the principal objective for this category of steel. For noble Lords who do not know what category 4 galvanised steel is, it is the steel that is mainly used for generic purposes such as steel automotives. The revised quota system seeks to balance the needs of downstream users with the need to protect the UK steel industry from unfair trading practices. We have to bear in mind that there is an oversupply of steel in the market, but we have to protect it in order to protect our local manufacturers and downstream users.

[Lord Hunt of Wirral (Con)]

I am very grateful to the Minister. He is in effect saying that there were no changes. Therefore, can he share with the House, in a full statement before we rise, exactly what tariff-free quota changes were made for category 4 galvanised steel products? That should include the quota granted to India, the basis on which it was calculated, any consequential changes for other countries and the assessment made of the impact on domestic steel production. I think we are entitled to that statement, if he could make it in due course.

[Lord Leong (Lab)]

I will try to provide—I hope—a more robust and comprehensive response to the noble Lord. As I said earlier, there is no change to the quota on steel imported from India, as far as I am aware. On the assessment, we have laid two pieces of legislation setting out how this measure will impact different types of businesses. Bearing in mind that these measures just came in on 1 July—it has been only 21 days—we should give it some time before we see how it will impact the sector and industry. As I said, we constantly monitor the situation, and my ministerial colleagues have regular conversations with steel manufacturers and downstream users. I am really pleased that my colleague Chris McDonald has been reappointed as Minister of State—I congratulate him on that—and he has regular contact with the steel sector. We work very closely with the sector, and if there are any changes, we will address them accordingly.