In light of impending US trade penalties, the UK government unveiled a multibillion-pound plan on Sunday to safeguard the country’s steel sector.
The Labour government of Prime Minister Keir Starmer announced that it would contribute up to $3.2 billion, or $2.5 billion, to boost the industry.
Additionally, it started a consultation to find ways to lower excessive electricity costs and “protect the steel sector from unfair trading practices abroad.”
“The UK steel industry has a long-term future under this government,” Business Secretary Jonathan Reynolds said in a statement.
The declaration was made just days after US President Donald Trump declared that starting on March 12, imports of steel and aluminum will be subject to 25% tariffs.
The top three countries that export steel to the US are Canada, Mexico, and Brazil, with South Korea coming in second.
About 10% of Britain’s steel exports go to the US, with roughly $400 million ($495 million) shipped there in 2023.
The tariff plan would be a “devastating blow,” according to the UK’s steel industry association.
Trump’s administration is allegedly “engaging” with Starmer’s government “to work through the detail” of his announcement.
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