UK raises steel tariffs to 50%, joining EU in tightening trade barriers

The United Kingdom will join the EU in tightening steel protectionism measures starting July 1, adding pressure on South Korean steelmakers even though Britain accounts for only a small share of the country's total steel exports.

According to South Korea's Ministry of Trade, Industry and Energy, the British government announced its final plan for a new steel measure to replace the existing steel safeguard on Thursday, with implementation set for July 1.

Under the new measure, the UK will expand the number of steel product categories subject to global safeguard measures from 16 to 20, and cut the total duty-free import quota by nearly half — from 6.35 million metric tons to 3.22 million metric tons.

The tariff rate on steel imports exceeding country-specific quotas will double from 25 percent to 50 percent, directly affecting South Korean steel exports to the UK.

Britain has allocated a duty-free quota of 173,000 metric tons across nine South Korean product categories. Under the previous safeguard measure, which applied from July last year through this month, four South Korean steel product categories had been assigned a quota of 93,000 metric tons.

While the quota volume has increased, the number of product categories subject to quotas has grown at a faster rate than the volume itself, meaning the overall regulatory burden has in effect tightened.

South Korea's steel exports to the UK averaged 321,000 metric tons annually from 2022 to 2024, representing about 1.2 percent of total steel exports of 27.12 million metric tons. Though the share is not large, the tariff hike is bound to weigh on the industry.

The ministry has previously expressed concern over the UK's practice of setting country-specific quotas without consulting major exporting nations.

Seoul has particularly emphasized that South Korean steel has contributed to the stability of British manufacturing and supply chains, and that Korean steelmakers have maintained steady export volumes under the existing safeguard framework. The government has consistently argued that South Korea's export track record and industrial contributions should be fully reflected in any new arrangement.

The UK has said it plans to conduct compensation consultations with steel-exporting countries through tariff modification procedures under Article 28 of the General Agreement on Tariffs and Trade, within the World Trade Organization framework.

"We will closely examine the impact of this measure on our steel industry's exports to the UK," a ministry official said. "We will make full use of all available consultation channels, including compensation talks under GATT Article 28, to ensure maximum market access for our industry and that South Korea's national interests are substantively reflected."