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

The Future of Steel in the UK: A Resilient Industry Amidst Challenges

Steel remains a cornerstone of the UK economy, and its future is secure, despite external pressures such as Donald Trump’s tariffs on steel and aluminium imports, according to Deputy Prime Minister Angela Rayner. Speaking to broadcasters, Rayner emphasized that while the steel industry has faced significant hardships in recent years, the UK government is fully committed to supporting its growth and sustainability. Her remarks come in response to President Trump’s announcement of a 25% tariff on all steel and aluminium imports into the US, which could potentially disrupt the UK’s steel exports to the US, valued at approximately £400 million annually.

Rayner highlighted the critical role British steel will play in the UK’s infrastructure and housing plans. She stated, "British steel has been through a very difficult time, but it absolutely has a future." The Labour government’s proposed reforms to planning rules aim to boost construction and infrastructure projects, creating new opportunities for domestic steelmakers. This vision aligns with the government’s long-term strategy to rebuild and strengthen the UK’s industrial base, with steel at the heart of these efforts.

Addressing Trump’s Tariffs: A Call for Calm and Strategic Response

The US tariffs on steel and aluminium have sparked concerns across the globe, with the UK steel industry expressing alarm over the potential economic fallout. UK Steel described the tariffs as a "devastating blow" and accused Trump of undermining free trade, warning of significant ramifications for the sector both in the UK and worldwide. However, trade minister Douglas Alexander has urged a measured response, cautioning against knee-jerk reactions and emphasizing the need for careful analysis and diplomacy.

Alexander, who is also a Cabinet Office minister, noted that the US has a long history of maintaining a strong trade relationship with the UK, worth around £300 million annually. He emphasized the importance of maintaining this partnership and finding mutually beneficial solutions. The business secretary, Jonathan Reynolds, is scheduled to meet with industry leaders and trade unions within 24 hours to discuss the implications of the tariffs and explore ways to mitigate their impact.

A Balanced Approach: Government Support and Industry Investment

While the tariffs pose a significant challenge, the UK government has reaffirmed its commitment to supporting the steel industry. Rayner stressed that the government has already taken steps to ensure the future of British steel, including investments in the sector and collaboration with industry stakeholders. She also highlighted the role of domestic steelmakers in the UK’s infrastructure and housing plans, which are expected to drive demand for steel in the coming years.

However, the industry is not without its challenges. The transition to greener steel production, for instance, has led to job losses, as seen in Tata Steel’s announcement of up to 2,800 redundancies at its Port Talbot plant in Wales. The government has established a fund to support affected workers and businesses, acknowledging the human cost of industrial restructuring. Despite these difficulties, Rayner remains optimistic, asserting that British steel is well-positioned to thrive in the long term.

Industry Reactions and the Path Forward

The UK steel industry has expressed mixed reactions to the government’s assurances. While some appreciate the commitment to supporting the sector, others remain skeptical, given the scale of the challenges posed by both the tariffs and the transition to sustainable production methods. triturates trade tensions between the UK and the US, with concerns that the tariffs could escalate into a broader trade war.

Alexander has acknowledged the uncertainty generated by Trump’s negotiating style, which often involves creating chaos to extract concessions. He urged stakeholders to remain calm and focused, emphasizing the importance of maintaining open lines of communication with the US. Meanwhile, the government continues to explore opportunities for British steel in domestic and international markets, leveraging the industry’s reputation for quality and innovation.

Steel’s Role in the UK’s Economic and Environmental Future

Looking ahead, the UK steel industry is poised to play a pivotal role in the nation’s economic and environmental agenda. As the UK transitions to a greener economy, steelmakers are under pressure to adopt more sustainable practices, reducing carbon emissions and leveraging new technologies. The government has signaled its willingness to invest in this transition, recognizing the importance of maintaining a competitive and environmentally responsible steel sector.

While the road ahead is fraught with challenges, there is a growing sense of optimism about the future of British steel. With government support, industry innovation, and a focus on long-term planning, the sector is well-positioned to overcome current obstacles and thrive in the years to come. As Rayner noted, "We believe that British steel has a future. We’re investing in British steel, we’re working with the industry." With this collective effort, the UK’s steel industry can emerge stronger and more resilient than ever.