Beautiful Virgin Islands

Friday, Jun 13, 2025

US-UK Trade Agreement Places Conditions on British Steel Ownership

US-UK Trade Agreement Places Conditions on British Steel Ownership

New deal aims to restrict Chinese influence over UK steel industry and address tariffs on car exports.
The recent US-UK trade agreement introduces specific conditions regarding the ownership of British steel plants, primarily targeting the Chinese-owned British Steel plant in Scunthorpe.

The deal, emerging from negotiations to mitigate existing steel tariffs, aims to prevent potential circumvention of US tariffs by ensuring that Chinese interests do not manipulate UK operations for benefits in the American market.

Reports indicate that the US administration, under former President Donald Trump, insisted on these ownership conditions to secure its position against Chinese competition.

Government officials in the UK have stated that control of the Scunthorpe plant is effectively in the hands of Jonathan Reynolds, the UK’s Business Secretary, reducing concerns that the plant could be used as a processing base for Chinese steel.

The trade deal, finalized recently, delivers significant relief to both the car manufacturing and steel industries amid concerns over potential job losses.

Under the agreement, US tariffs on cars are set to be reduced to 10%, while steel tariffs could be eliminated entirely, contingent on fulfilling stipulated conditions.

This development marks a notable win for sectors worried about the ramifications of trade tariffs.

Peter Mandelson, the UK’s ambassador to the US, highlighted the immediate impact of the deal in preserving jobs at the Jaguar Land Rover (JLR) plant in the West Midlands, averting potential cuts affecting a significant portion of its UK workforce, which numbers around 30,000.

Reports previously indicated that JLR was preparing for layoffs prior to the deal, pending resolution of tariff negotiations.

Leader of the Opposition, Keir Starmer, expressed optimism about the agreement, asserting that its effects would safeguard numerous jobs across the steel, automotive, and pharmaceutical sectors.

Discussions between the UK and US continue over the precise definitions and parameters of the steel export quotas that will qualify for tariff-free treatment.

These negotiations emphasize the necessity to evaluate supply chain security and the ownership of production facilities, which are critical components outlined in the agreement text.

The US plans to establish a quota for UK steel and aluminum once certain requirements are met.

Howard Lutnick, the US Secretary of Commerce, reaffirmed that the UK government’s actions regarding the nationalization of British Steel were pivotal to the deal, although UK officials clarified that US pressure was not responsible for this move.

The UK currently exports approximately 200,000 metric tons of steel to the US annually, valued at around £400 million.

Chrysa Glystra, director of trade and economic policy at UK Steel, acknowledged the complexities that lie ahead, stating that clarity on the terms of the tariff exemptions and operational deadlines is essential for the steel sector.

The urgency of the recent agreement reflects an attempt to secure immediate progress and safeguard jobs within the UK automotive industry.

While discussions with US officials continue to refine the deal, former President Trump has pivoted his focus towards upcoming trade talks with China, suggesting that the finalization of the specific elements of the UK agreement is expected in the coming weeks.

Despite speculation, No 10 has dismissed claims that the deal grants the US a veto over Chinese investments in sectors impacted by the agreement.
Newsletter

Related Articles

Beautiful Virgin Islands
0:00
0:00
Close
Two Women Found Dead in Eryri National Park
Operation "Like a Lion": Israel Strikes Iran in Unprecedented Offensive
Pentagon Initiates Review of AUKUS Nuclear Submarine Pact
Meta to Invest $15 Billion in Scale AI to Advance AGI Goals
Rare Cancer Cases Triple Among Millennials, Alarming Doctors
G7 Finance Ministers Convene in Canada with Focus on Ukraine and Trade Tariffs
UK Spending Review Prioritizes Health and Defence Amid Budget Constraints
US Raises Security Concerns Over Proposed Chinese Embassy in London
Defined Benefit Pension Reforms Expected to Unlock Limited Investment
UK Industrial Strategy Launch Delayed Amid Budget Negotiations
Crick Institute Seeks Additional Funding to Attract International Scientists
Zia Yusuf Returns to Reform UK in New Role After Brief Resignation
Bezos's Lavish Venice Wedding Sparks Local Protests
US Urges UK to Raise Defence Spending to 5% of GDP
Europe Prepares for Historic Lunar Rover Landing
Italian Parents Seek Therapy Amid Lengthy School Holidays
British Fishing Vessel Seized by France Fined €30,000
Dutch Government Collapses Amid Migration Policy Dispute
Germany Moves to Expedite Migrant Deportations
UK Commits to 3.5% GDP Defence Spending Under NATO Pressure
Scientist Returns Royal Society Prize in Protest Over Elon Musk's Fellowship
Chancellor Proposes 'Housing Bank' and £25 Billion Social Housing Boost
UK Retail Sales Growth Slows in May Amid Consumer Caution
Home Secretary Directed to Find Budget Savings to Protect Police Funding
Rolls-Royce Secures Government Backing for UK's First Small Modular Nuclear Reactors
Domestic Buyers Capitalize on London Property Market as Non-Doms Retreat
Nvidia CEO Criticizes UK's Digital Infrastructure Amid £1 Billion AI Investment Pledge
UK Commits Additional £11.5 Billion to Sizewell C Nuclear Project
UK Unemployment Reaches Near Four-Year High as Wage Growth Slows
Chancellor Reinstates Winter Fuel Payments for Majority of Pensioners
Simone Biles and Riley Gaines Clash Over Transgender Athletes in Women's Sports
California Governor Disputes National Guard Deployment Amid Rising Tensions
Protests Erupt in Los Angeles with Symbolic Flag Burning
Israeli Forces Intercept Gaza-Bound Aid Vessel Carrying Greta Thunberg
IMF Warns of Severe Global Trade War Impacts on Emerging Markets
US and China Engage in Trade Discussions in London Amid Ongoing Tensions
Low Turnout Jeopardizes Italy's Citizenship Reform Referendum
EU Lawmaker Calls for Broader Exemptions in Supply Chain Legislation
France's Defense Spending Plans Threatened by High National Debt
European Small-Cap Stocks Outperform U.S. Rivals Amid Growth Revival
Switzerland Proposes $26 Billion Capital Increase for UBS
Germany's Merz Signals Continued U.S. Reliance After Meeting with Trump
Transatlantic Interest Rate Divergence Widens as Trump Pressures Powell
Sam Altman's Eye-Scanning Digital ID Project Launches in UK
Qualcomm to Acquire UK's Alphawave in $2.4 Billion Deal
Syria to Reconnect to Global Economy After 14 Years of Isolation
Trump Administration Issues New Travel Ban Targeting 12 Countries
Man Group Mandates Full-Time Office Return for Quantitative Analysts
JPMorgan Warns Analysts Against Accepting Future-Dated Job Offers
Builder.ai Faces Legal Scrutiny Amid Financial Misreporting Allegations
×