26/05/2026
Steel import tariffs are hitting 50% this July. If you're pricing Q3 packages right now those quotes are dated.
On paper, protecting domestic production sounds like the right move for the industry. Supporting UK fabricators and reducing our reliance on imports is a solid long-term goal.
Though when you look at the day to day reality of delivering a project, it gets complicated.
From 1 July 2026, the government is cutting tariff-free steel import quotas by 60%.
If a shipment tips over that new limit, it faces a massive premium.
From the Gov.UK update: "...overall quota levels for steel imports will be significantly reduced by 60%... and steel coming into the UK above these levels will be subject to a 50% tariff."
Alongside this, the Steel Industry (Nationalisation) Bill just passed its second reading. Business Secretary Peter Kyle stated the objective is to bring "stability for British Steel’s workers, suppliers and customers."
While stability is exactly what we need, policy changes take time to settle and our project schedules are live right now.
The practical challenges we need to manage immediately are...
- Lead times. Potential delays as supply chains adapt to the new quota limits.
- Cost certainty. Upward pressure on fabrication rates to cover market volatility.
- Risk management. Making sure fixed price contracts account for these mid-year shifts.
If you’re pricing today for work in Q3 or Q4, relying on historical rates is a massive risk. It’s no longer just about securing the material, it’s about timing the supply chain to avoid that 50% tariff.
How are you handling this with your own supply chain? Are your partners locking in rates early or are you holding off until the July numbers clarify?