Trump tariffs possibly to cause Britain’s last steel plant to close
(MENAFN) The UK’s only remaining producer of virgin steel has announced plans to close its Scunthorpe plant due to difficult market conditions, including the 25% tariff imposed by US President Donald Trump on steel imports. The tariffs, which took effect on March 12, have made the plant’s operations financially unsustainable, with losses reaching £700,000 ($900,000) daily despite a £1.2 billion investment by Chinese owner Jingye since 2020.
The closure, which could happen as early as June if no agreement with the UK government is reached, threatens 2,000 to 2,700 jobs. British Steel has rejected the UK government's recent £500 million subsidy offer, citing the high costs of switching to greener technologies, such as electric arc furnaces (EAFs), which the government has pushed for.
The UK government is considering all options, including the potential nationalization of British Steel, while also trying to negotiate a solution. The UK steel industry, once a global leader, now represents just 0.1% of the nation’s economy.
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