British steel ‘absolutely has a future’ despite US tariffs, says deputy PM Angela Rayner

The UK steel industry, despite facing significant challenges in recent years, has been assured of a bright future by Deputy Prime Minister and Housing Secretary Angela Rayner. She emphasized that while the sector has endured a “very difficult time,” the government remains committed to supporting it. This comes amid growing concerns following the announcement by former US President Donald Trump of a 25% tariff on all steel and aluminum imports into the United States. British steel exports to the US are valued at approximately £400m annually, while aluminum exports are worth around £300m. These tariffs have sparked worries about the potential impact on UK steelmakers and the broader industry.

Ms. Rayner sought to reassure steel workers and businesses, highlighting the crucial role the industry will play in Labour’s plans to boost housebuilding and infrastructure projects. She noted that the government has already been working closely with the steel sector to ensure its survival and success. “British steel has been through a very difficult time, and our business secretary has been working hard with the industry to make sure that we have a future for British steel,” she said. “But this government is committed to supporting that industry into the future.” She also emphasized that the UK’s long-term infrastructure and housing plans will rely heavily on domestic steel production, underscoring the sector’s importance to the nation’s economic growth.

The announcement of tariffs by President Trump has been met with strong criticism from the UK steel industry, which warns that the move could have devastating consequences. UK Steel described the tariffs as “a sledgehammer to free trade” with significant ramifications for the global steel sector. The organization expressed concerns that the tariffs would disproportionately harm UK steelmakers, who rely on exports to the US. Meanwhile, Trade Minister Douglas Alexander urged a measured response, calling for a “cool and clear-headed” approach rather than a “knee-jerk” reaction. He emphasized the importance of maintaining a strong and balanced trade relationship with the US, which is worth around £300m annually.

Mr. Alexander confirmed that the Business Secretary, Jonathan Reynolds, would meet with representatives from the steel industry and trade unions within 24 hours to discuss the situation and potential solutions. He also noted that the US has only published details about tariffs on steel, not aluminum, leaving some uncertainty about the full scope of the measures. Despite the challenges posed by the tariffs, Mr. Alexander expressed optimism about finding mutually beneficial solutions, given the historical strength of US-UK trade relations. However, he acknowledged the unpredictable nature of President Trump’s approach to negotiations, describing it as a “speciality in generating uncertainty.”

The steel industry in the UK is also grappling with other significant challenges, including job losses. Up to 2,800 jobs are expected to be cut at Tata Steel’s Port Talbot plant, the country’s largest steelworks, as the company transitions to greener production methods that require fewer workers. This shift toward more sustainable practices, while necessary for the industry’s long-term viability, has resulted in immediate hardships for employees and supply chain businesses. In response, the government has established a multi-million-pound fund to support affected workers and businesses, aiming to mitigate the impact of these changes.

Looking ahead, the UK steel industry’s future appears to be shaped by both domestic policy and international trade dynamics. While the government has expressed its commitment to supporting the sector, the challenges posed by US tariffs and the transition to greener production methods highlight the complexities of navigating a rapidly changing global economy. As the UK seeks to rebuild its economy and achieve its net-zero ambitions, the steel industry will play a pivotal role in delivering critical infrastructure and housing projects. However, achieving this vision will require continued government support, innovative solutions, and a coordinated effort to address both domestic and international challenges.