The UK government will reduce tariff-free steel import allowances by 51% starting 1 July, introducing new safeguards aimed at countering a global oversupply of cheap Chinese metal and protecting domestic steelmaking.

The new quotas replace pre-Brexit tariff-free arrangements the UK had carried over from EU rules, which expire at the end of the month. The UK and EU have aligned the approach due to “highly interconnected supply chains,” with the measures expected to coincide from 1 July alongside similar changes introduced by the EU.

Along with the reduced duty-free quotas, tariffs on steel imports that exceed the quota levels will be doubled, moving to 50% of the product’s value for out-of-quota shipments. Under the updated rules, the UK’s tariff-free quota volume will be reduced so that only 3.2 million tonnes can be imported duty-free in future. EU steel is expected to account for much of the tariff-free volumes, with each product’s share ranging from about half to nine-tenths of its respective quota.

Business secretary Peter Kyle said the safeguards were designed to protect UK steel production from global overcapacity while giving supply-chain businesses certainty, adding that the government will review the measure after 12 months.

The changes also include tariff exemptions for manufacturers using 11 specific types of steel, after industry concerns that import duties would cripple production where no local alternative supply exists.

Some UK steel firms argued the new quotas remain too high in specific categories. Tata Steel UK said it believed the quota volumes were too high for metallic coated steels, packaging steels and hollow sections, arguing this could keep allowing significant import penetration into strategically important UK steel markets and continue pressure on domestic production and supply chains.

The UK’s negotiations with EU representatives have taken place in the run-up to the new rules, with discussion framed around access to the EU market, which is the biggest destination for British steel exports. The European Commission declined to comment on EU quota details before the changes took effect, but said it was in close contact with the UK and shared the objective of ensuring the long-term viability of steel industries.

The safeguards cover 28 types of steel, ranging from construction reinforcing bars to rolled sheets used in stainless steel sinks and aeroplanes. The UK produces around 3 million tonnes of steel per year, while global supply is nearly 2 billion tonnes.