Policy Shift: Steel as a Strategic Asset

From 1 July 2026, the UK has introduced stricter trade measures - part of the wider UK Steel Strategy - to protect domestic steel production. Tariff-free import quotas have been reduced, and a higher tariff now applies to material brought in above those limits. The measures are supposed to apply to the categories of steel that can be produced domestically. However now that the final version of the strategy has been produced, this is not the case and many products that cannot currently be produced in the UK are captured within the tariffs.

The new quotas sit below recent import levels for many of them. Whilst these measures are intended to strengthen UK steelmaking capacity and support long-term investment in the sector, which is welcome, they will also bring new challenges - tighter material availability and higher costs, particularly for out-of-quota imports.

This increases commercial risk to projects and makes early engagement between principal contractor and steel fabricator essential, particularly around the timing of material order placements. Transitional arrangements are also being finalised for certain contracts agreed before 14 March 2026 - another reason to plan sourcing early.

Industry Voice: Striking the Balance

Industry bodies, including the BCSA - of which Embrace Steel Group is a member - continue to work with government and other stakeholders to ensure the right balance is achieved: protecting UK production without placing undue pressure on downstream sectors.

Key concerns include:

• Access to non-UK-produced steel grades
• Fair and workable quota levels
• Avoiding unnecessary cost increases for construction and manufacturing

Our Approach

At Embrace Steel Group, we continue to work with our suppliers to secure sufficient supply, and we support our customers with up-to-date pricing insights, reliable supply options and practical guidance in a volatile market.

As the industry evolves, we remain committed to helping you navigate it with confidence.