The EU has replaced its safeguard regime with a stricter Tariff-Rate Quota (TRQ) system, setting an annual tariff-free volume of 18.35 million metric tons (mt) across 26 categories, which EUROFER believes could restore up to 15 million mt of lost European steel production. However, UK producers warned of market access challenges, noting that over 70% of UK steel exports go to the EU. Although roughly two-thirds of UK exports will remain tariff-free for the next five years, the potential for 50% tariffs once quotas are exhausted highlights the growing friction and complex trade dynamics in post-Brexit supply chains.

[SMM Steel] The UK is seeking exemptions from the EU’s upcoming steel import restrictions as London and Brussels continue post-Brexit trade negotiations. The EU plans to reduce tariff-free steel quotas and raise out-of-quota tariffs to 50%, while the UK is also preparing similar measures, including a 60% reduction in tariff-free quotas and 50% tariffs above quota limits. UK Trade Minister Chris Bryant said restrictive measures between the UK and EU would be counterproductive, arguing that global overcapacity, particularly from China, remains the core issue affecting European steel markets.

Starting July 1, 2026, the UK will tighten its steel import controls, slashing tariff-free quota volumes by approximately 60%. Under the new regime, imports exceeding product-specific quotas will be subject to a steep 50% tariff. Notably, stainless steel long products will be brought back under quota restrictions for the first time since Brexit, reflecting a significant pivot in the UK government’s broader Steel Strategy. By extending protections to domestically manufacturable products, these measures are expected to cause substantial disruption to the UK’s stainless steel long products supply chain and pricing structure.

In July 2025, China's total exports of NdFeB permanent magnets reached 5,577.13 mt, up 77.95% MoM, with exports to Europe at 1,528.85 mt, accounting for 27% of the monthly export total. Cumulative data from January-July 2025 shows that China exported 11,476.77 mt of rare earth permanent magnets to Europe, representing 41% of its global exports. Germany, as the largest demand country in Europe, imported 5,534 mt from January to June, accounting for 48% of Europe's total imports, reflecting the deep reliance of Europe's new energy industry on China's supply chain.