UK Imposes Stricter Steel Import Caps on Vietnam, South Korea, Algeria

The UK government, led by Business Secretary Jonathan Reynolds, has decided to impose stricter import restrictions on steel from Vietnam, South Korea, and Algeria to protect the domestic steel industry from global oversupply and redirected cheap steel. Reynolds rejected the Trade Remedies Authority's (TRA) recommendation of 40% country-specific caps, instead setting lower caps of 20% for Vietnam and 15% for South Korea and Algeria, with any excess imports subject to a 25% tariff. These measures aim to balance safeguarding UK producers while ensuring stable market supply and will take effect from July 1, 2025, following consultations with WTO members. Industry leaders, including Gareth Stace of UK Steel, welcomed the decision as a strong commitment to the steel sector, highlighting the potential to reduce steel diversion from the US and EU and protect UK competitiveness. The government also plans to prevent unused quarterly quotas from rolling over and to restrict access to residual quotas in the final quarter, aligning UK protections with those of the EU. These actions are part of broader efforts, including negotiations to remove US tariffs and the nationalization of British Steel, to strengthen the UK steel industry amid ongoing global trade tensions and recent US tariffs imposed by President Donald Trump.