UK and US Steel Industries at Risk Amid Tariff Talks

Reynolds emphasized the importance of negotiating an exemption from President Donald Trump’s planned 25% import tax on steel, which is scheduled to take effect in March.

He highlighted the unique trading relationship between the UK and the US, noting that specialized steel exports from the UK, such as Navy submarine casings produced in Sheffield, are essential for the US. These tariffs, Reynolds argued, would not only harm the UK but also increase costs for US taxpayers.

In an interview on the “Sunday with Laura Kuenssberg” program, Reynolds stated that the tariffs would negatively impact both nations. He revealed that he had engaged in constructive talks with US officials, including the special envoy to the UK, acknowledging that while the US is shifting its trade approach, the UK has a distinct argument compared to other countries like the EU or China. The UK government has pledged up to £2.5 billion to support the domestic steel industry but has not yet retaliated against Trump’s tariff announcement. UK Steel, the industry’s representative body, described the tariffs as a “devastating blow,” expressing concerns about reduced exports to the US and the potential for steel dumping in the UK by other nations who could no longer export to the US.

Shadow Business Secretary Andrew Griffith criticized the government for its lack of engagement with the US on this issue, calling for clearer communication with one of the UK’s closest trading partners. In response, the government launched a consultation on its “Plan for Steel” to address long-term challenges facing the industry, including cheaper imports. Proposed measures include expanding steel production, encouraging the use of UK-made steel in public projects, and investing in environmentally friendly technologies like electric arc furnaces.

Reynolds acknowledged that new technologies would lead to job cuts, particularly in areas like Scunthorpe, but expressed optimism that increased demand for UK steel could create new employment opportunities. The Liberal Democrats, however, urged the government to prepare for potential retaliatory tariffs, warning that the UK steel industry is dangerously exposed to the impact of Trump’s policies.