16:53
World Business
UK unveils multibillion-pound steel plan amid looming US tariffs
Reuters
The UK government has unveiled a multibillion-pound plan to strengthen its steel industry and maintain its global competitiveness.
The UK government has announced a multibillion-pound plan to strengthen its steel industry and maintain global competitiveness. The move comes as concerns rise over the impending 25% U.S. tariffs on British steel and their potential impact on exports and domestic pricing.
To safeguard the industry, the UK government is injecting £2.5 billion into the sector. It is also prioritizing infrastructure projects to boost domestic production. Additionally, the British Department for Business and Trade is seeking public feedback on a new steel strategy. A consultation has been launched to address key challenges such as high electricity costs, unfair trading practices, and scrap metal recycling.
The urgency of these measures is driven by the fast-approaching deadline for U.S. tariffs on steel imports, set to take effect on 12 March.
British Business Secretary Jonathan Reynolds has warned that the tariffs could increase costs for U.S. taxpayers. He argues that both the UK and the U.S. have a "mutual interest" in negotiating an exemption, particularly as the UK supplies specialized steel products like submarine casings from Sheffield.
There are growing concerns that the U.S. tax hikes could severely impact the UK steel industry, which contributes £400 million annually to transatlantic trade. While the U.S. accounts for just 10% of UK steel exports, it remains crucial for specialized producers.
Former U.S. President Donald Trump, who introduced the tariffs, has insisted they will be enforced "without exceptions or exemptions."
As the tariff deadline looms, the UK government is taking proactive steps to protect its steel industry, ensuring its long-term sustainability and global competitiveness. However, the full impact of the U.S. tariffs remains to be seen.
12:06
Newshour with Guy Shone
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