• The UK government is set to invest up to £2.5 billion to support the steel industry amid threats of US tariffs.
• A consultation titled "Plan for Steel" will address high energy costs and unfair trade practices.
• Business Secretary Jonathan Reynolds emphasized the long-term future of UK steel under the current government.

The UK government has announced a robust plan to fundamentally strengthen its steel industry as it confronts potential tariffs imposed by the United States. Following President Trump's declaration of a 25% tariff on steel imports starting March 12, the UK government aims to unveil a comprehensive consultation, dubbed the "Plan for Steel," ahead of its original schedule. This initiative aims to not only fortify the industry against external pressures but also to promote the use of domestic steel in infrastructure projects, as per statements from the Department for Business and Trade (BBC). Business Secretary Jonathan Reynolds has stated that the government's commitment to this £2.5 billion ($3.2 billion) package is essential in light of the existing issues impacting the steel sector. The financial support is designed to combat the high energy costs that challenge the industry's competitiveness and to tackle so-called "unfair trading practices," which could stem from increased dumping of cheaper steel in the UK market due to the tariffs (Channel News Asia). The urgency of these measures was underscored by warnings from UK Steel, the industry’s representative body, which described the tariffs as a potentially "devastating blow" to the sector, which exports about 10% of its product to the US, valued at nearly £400 million ($495 million) annually. A consultation on how to mitigate this fallout will address critical topics, including energy costs, which have escalated as the sector grapples with rising production expenses amid global economic volatility (India Times). In response to Trump's tariff threats, Reynolds has been actively building relations with US officials, describing the UK’s case for exemption from tariffs based on its unique role in the US defense sector and manufacturing supply chains. This diplomatic engagement comes amid broader concerns that the imposition of such tariffs might significantly alter the landscape of UK-US trade relations and impact hundreds of thousands of jobs linked to steel production in the UK. The government asserts that it is "wasting no time" in its support for UK steel, emphasizing that a plan created from this consultation could reshape the future of the industry in the coming years. As the situation continues to evolve, the UK government asserts its dedication to ensure not just immediate responses to these tariff challenges but also the long-term viability of its steel manufacturing sector.