The United Kingdom is facing the prospect of becoming the first G7 nation without its own steel manufacturing capabilities, as a key steel company attributes its plans to close two blast furnaces to President Donald Trump’s tariffs.
British Steel, owned by the Chinese steel conglomerate Jingye, has announced intentions to shut down its two blast furnaces in England, according to a report by The Telegraph. This decision jeopardizes 2,700 jobs and signals the potential end of steel production in the UK after 150 years. Jingye acquired British Steel in 2020.
Jingye indicated that the “imposition of tariffs” has rendered the blast furnaces and steel-making operations “no longer financially sustainable.”
THE LEFT THINKS TRUMP’S TARIFFS ARE A DECLARATION OF WAR. BUT THEY’RE CLUELESS ABOUT THE BATTLEFIELD
In fact, Trump imposed 25% tariffs on steel and aluminum imports to the United States, which took effect earlier this month.
Since 2020, Jingye has invested billions to keep operations afloat, yet losses have skyrocketed to hundreds of thousands of dollars each day.
The impending closures could pose national security threats.
Energy Minister Sarah Jones remarked, “There is a reason why Russia bombed all the blast furnaces in Ukraine almost immediately; countries require steel not only for defense but also to construct roads and infrastructure.”
Roy Rickhuss, general secretary of the Community union, expressed, “We urge Jingye and the government to return to the negotiating table before it is too late.”
Rickhuss added, “Considering we are on the verge of becoming the only G7 country without domestic primary steelmaking capacity, it is no exaggeration to say that our national security is seriously compromised.”
Trump has actively worked to keep U.S. Steel under American control. Nippon Steel, a Japanese firm, has indicated a willingness to increase its investment in U.S. Steel facilities to $7 billion, in an effort to persuade Trump that the Pittsburgh steelmaker would thrive under foreign ownership.
During a campaign rally in September 2024, Trump asserted, “We are also going to keep U.S. Steel right here in America.”
Trump initially opposed the deal in February 2024, but this year he stated that Nippon would consider an investment in U.S. Steel rather than a purchase, according to the Pittsburgh Post-Gazette.
