The UK government has announced an investment of £2.5 billion ($3.15 billion) to support the steel industry. Bloomberg writes about it, UNN reports.
Details
This decision was a response to the threat of 25% duties that US President Donald Trump promised to impose on steel and aluminum imports. The funds will be used to modernize production, protect against unfair competition and strengthen the domestic market.
The British government has unveiled a new plan for the steel industry just days after Trump announced the possibility of imposing 25% tariffs on steel and aluminum imports from all countries.
Business Secretary Jonathan Reynolds said that £2.5 billion ($3.15 billion) will be allocated to support the industry, part of which will come from the newly created UK National Welfare Fund.
We will mobilize all the resources of the government to support the industry and build on this success
The plan will focus on modernizing enterprises, including installing modern electric arc furnaces, which are more energy efficient and will help British manufacturers compete with global players.
About 10% of UK steel is exported to the US, so the introduction of duties could have a significant impact on the industry. Chancellor of the Exchequer Rachel Reeves noted that the British side is already looking for opportunities to negotiate with American officials to avoid trade barriers.
We have a balanced trade with the United States - there is neither a surplus nor a deficit, so there are no problems in this area that need to be solved by tariffs or other trade barriers
The investment plan also includes expanding production capacity, improving scrap metal recycling, and promoting the use of British steel in public infrastructure projects.
In an unstable world, having our own production facilities is critical for our economy and security
The new investment in the steel industry coincides with the government's decision to support the construction of a third runway at Heathrow Airport, which will require 400,000 tons of steel - enough to build the Empire State Building.
Recall
The President of the United States has signed a new executive order imposing 25% import duties on steel and aluminum. These tariffs will take effect on March 4.