Business Secretary: Trump’s steel tariffs would damage UK and US

Sunday 16 February 2025 11:08 am

US President Donald Trump’s deliberate tariffs on imports of UK metal will trigger injury on each side of the Atlantic, Enterprise Secretary Jonathan Reynolds mentioned.

The Authorities has promised a bundle of as much as £2.5bn to spice up the UK metal business and assist safe its future.

A session was launched geared toward long-term points going through the sector comparable to excessive electrical energy prices, unfair buying and selling practices, and scrap metallic recycling.

However the dangers going through the business might additionally embody the 25 per cent tax on imports deliberate by Mr Trump to come back into drive in March.

Mr Reynolds advised the BBC’s Sunday With Laura Kuenssberg that specialised metal from the UK was utilized by the US Navy on its submarines and a 25 per cent import tariff would push up the fee to US taxpayers.

“In relation to metal and aluminium, what we ship to the US may be very specialised, comparatively area of interest merchandise that the US wants,” he mentioned.

He mentioned: “Among the issues the US imports, it hasn’t bought different suppliers for, the submarine casings that come from Sheffield, as an example, to the US Navy. I don’t need them paying extra needlessly for that, so we will have interaction, and we’ve already been doing that.”

Requested what the affect of the tariffs as a result of come into drive in March could be, he mentioned: “It might be unfavourable for ourselves, it might be unfavourable for the US as effectively.”

He mentioned “there may be the idea for constructive engagement” between the UK and US on tariffs, however “I’m not saying it’s straightforward”.

“I recognize they’ve a mandate for altering how they strategy the problems of commerce, however we’ve got bought a distinct argument, a distinct story to inform, to the EU or to China in relation to our buying and selling relationships.”

Assist for the metal business might be accessible by the Nationwide Wealth Fund which ministers mentioned may benefit areas together with Scunthorpe, Rotherham and Redcar, and Scotland.

Funds might be spent on initiatives geared toward giving metal a protracted future comparable to electrical arc furnaces.

The furnaces, used to recycle scrap metallic into new metal, are cleaner than blast furnaces however require fewer staff – resulting in job losses throughout the business.

“There’s a discount in head rely while you transfer to the brand new applied sciences which can be accessible, that’s recognised,” Mr Reynolds mentioned.

However he mentioned there “might be extra jobs in metal within the UK” if demand might be created.

The announcement follows the Authorities’s go forward for growth at Heathrow Airport which would require 400,000 tonnes of metal.

The business has confronted various challenges lately, together with a change to a greener technique of manufacturing on the big plant in Port Talbot, South Wales, with the lack of jobs.

Mr Reynolds mentioned the business “has a long-term future underneath this Authorities”, including: “The deal introduced by Heathrow introduced this week will safe a powerful business pipeline for years to come back – and we’re placing the total weight of Whitehall behind the business to construct on this success.”

Gareth Stace, director common of UK Metal, mentioned: “The Authorities’s dedication to our metal sector is each important and welcome. A sturdy, daring, and impressive metal technique has the facility to reverse the sector’s decline, notably as we face growing competitors from imports benefiting from extra beneficial enterprise circumstances.”

Unions welcomed at the moment’s announcement.

Neighborhood common secretary Roy Rickhuss mentioned: “After a protracted period of neglect underneath the earlier authorities, we welcome the Authorities’s agency dedication to our metal business.”

Andy Prendergast, GMB nationwide secretary, mentioned: “After years of dithering, at the moment’s plan gives desperately wanted funding for our as soon as proud, now beleaguered metal business.

“Because the world turns into extra risky, major home metal making capability is significant for each our financial system and home safety.”

Unite common secretary Sharon Graham mentioned: “The launching of the metal technique is a important landmark for a basis business, whose success is crucial to the wellbeing of our financial system and our nationwide safety.

“It’s the first time in a long time {that a} Authorities has made a constructive dedication to spend money on the UK metal business.

“It’s important that every one such funding is clearly linked to rock stable job ensures.”

TUC common secretary Paul Nowak mentioned: “If we need to make extra merchandise right here in Britain and compete globally we want to have the ability to produce metal right here.”

Shadow enterprise secretary Andrew Griffith mentioned: “We look ahead to seeing the main points of this plan. A transparent half have to be steps to cut back the price of power which is putting an insupportable pressure on UK metal.”

Press Affiliation – David Hughes and Alan Jones