The UK government has announced a new plan to support the national steel industry just days after U.S. President Donald Trump imposed a 25% tariff on steel and aluminum imports.
According to Bloomberg, citing Business Secretary Jonathan Reynolds, the UK plans to invest £2.5 billion (approximately $3.15 billion) in modernizing the steel sector. A portion of these funds will come from the newly established UK National Wealth Fund.
The plan aims to prevent further decline in the industry, which has been under pressure due to rising energy costs, foreign competition, and decreasing investments. The funds will be used to upgrade production facilities, including the introduction of more efficient electric arc furnaces to help British manufacturers remain competitive.
According to Bloomberg, the initiative was introduced shortly after Chancellor of the Exchequer Rachel Reeves backed a project to build a third runway at Heathrow Airport, which will require 400,000 tons of steel.
The plan includes expanding domestic steel production, protecting against unfair trade practices, and enhancing metal recycling capacities. Additionally, the government aims to encourage the use of British steel in public infrastructure projects.
