The UK government will implement steel import tariffs to protect domestic producers from Chinese imports, slashing tariff-free quotas by 60% from July and imposing a 50% tariff on excess imports. Business Secretary Peter Kyle announced the measures, describing them as protection for a cornerstone of industrial policy. The move aligns the UK with similar actions taken by the US, EU, and Canada.

UK Steel hailed the policy as a "transformation" that shifts Westminster's approach from free trade ideology to defending critical industries. However, manufacturers reliant on imported steel face higher costs. China's annual steel production of approximately 1 billion tonnes has created a global glut following a property market downturn. The measures follow similar EU actions and are part of a broader £2.5bn steel strategy.

Tata Steel has committed to building a £1.25bn electric arc furnace at Port Talbot. The government subsidizes lossmaking British Steel at over £1.2mn daily while navigating challenges with replacing blast furnaces at Scunthorpe. Chinese-owned Jingye demands £1bn compensation for its investment in British Steel, though ministers have offered less than £100mn, creating significant financial uncertainty.