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3mo ago

UK Ramps Up Steel Industry Strategy as Trump Imposes New Tariffs

The Labour government accelerates a £2.5 billion investment plan to shield the steel sector from US tariffs and bolster its long-term viability.

Britain's Secretary of State for Business and Trade Jonathan Reynolds speaks at Downing Street, on the day of a Cabinet meeting in London, Britain, January 14, 2025. REUTERS/Chris J. Ratcliffe/File Photo
A worker at the Port Talbot plant in 2023. The steelworks have since been closed as it switches to electric arc furnace production
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Overview

  • President Donald Trump has announced a 25% tariff on all steel and aluminum imports to the US, set to take effect in March, raising concerns for the UK steel industry.
  • The UK government has expedited the release of its 'Plan for Steel,' which includes £2.5 billion in investments to modernize the sector and protect jobs.
  • Business Secretary Jonathan Reynolds argues that UK steel exports, which include specialized products for US defense, should be exempt from the tariffs.
  • The US is the second-largest export market for UK steel, valued at over £400 million annually, with industry leaders warning of significant economic impacts if tariffs are implemented.
  • The government’s plan includes measures to reduce energy costs, invest in electric arc furnaces, and promote the use of UK steel in domestic infrastructure projects like Heathrow Airport expansion.