Steel tariff shake-up puts pressure on UK supply chains 

UK businesses that rely on imported steel are being urged to review procurement strategies following the introduction of new tariff-rate quotas from 1 July, 2026. 

The new regime has reduced the volume of tariff-free steel that can enter the UK by around 60% compared with the previous safeguard system, while the tariff on above-quota imports has doubled from 25% to 50%. 

The quotas are administered quarterly by HMRC on a first come, first served basis, creating additional uncertainty for companies planning purchases and contracts. 

Richard Gray, Chief Operations and Commercial Officer at Cleveland Containers (pictured above), said the shorter planning cycle meant businesses had less margin for error when managing steel costs and availability. 

He also highlighted uncertainty around fabricated and semi-finished steel products, which currently sit outside the tariff regime, making cost forecasting more complex. 

Cleveland Containers said businesses should review supplier contracts for tariff exposure, check whether existing agreements qualify for transitional relief and consider diversifying sources of supply. 

Gray added that companies may also benefit from reviewing material specifications where alternative grades or designs could reduce cost pressures. 

With quotas resetting each quarter and the measure due for review after 12 months, Cleveland Containers said steel procurement is likely to require continued monitoring and adjustment. 

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