UK invests $3.15 billion in steel production in response to Trump’s tariffs
Photo: The British government wants to protect jobs in the steel industry (Getty Images)
The UK government has unveiled a new plan to protect jobs in the country’s steel industry. As part of the initiative, the state will invest £2.5 billion ($3.15 billion) to support the sector in response to US President Donald Trump’s decision to impose 25% tariffs on steel and aluminum imports, according to Bloomberg.
The funds will partially come from the newly established UK National Prosperity Fund. Lawmakers hope this plan will help halt the decline of the industry, which has been hit by rising energy costs, foreign competition, and declining investment.
The money will be used to invest in more efficient electric arc furnaces, aimed at helping British manufacturers compete more effectively.
Last week, British officials planned to hold talks with their counterparts in the Trump administration in an attempt to avoid the tariffs on steel and aluminum imports.
Chancellor of the Exchequer Rachel Reeves stated that she believes the UK can reach an agreement with the US to prevent these measures.
“Balanced trade — and that’s what the UK and the US have, there’s not a surplus or deficit, our trade is pretty much balanced — there’s not really a problem there that needs to be addressed through tariffs or any other sort of barriers,” Reeves said.
Bloomberg notes that about 10% of the steel produced in the UK is exported to the US, while Britain also imports metal from the US.
The report also states that the UK’s new plan will seek opportunities to expand domestic steel production, protect it from unfair foreign trade practices, and improve scrap metal recycling capacity. It will also promote the use of British steel in public projects.
As a reminder, Trump introduced a 25% tariff on all steel and aluminum imports from all countries without exceptions. The measure is set to take effect on March 12.
The decision has prompted responses from Canada, Brazil — two of the largest metal exporters to the US — and Japan. The European Union has also announced that it will respond with strict and proportional measures following the introduction of these tariffs.
At the same time, the US president indicated that he might consider making an exception for Australia, citing its imports of US-made aircraft. However, later, senior White House trade adviser Peter Navarro stated that Australia is “killing” the US aluminum market.
