Steel “absolutely has a future” in the UK despite Donald Trump’s tariffs, the deputy prime minister has said.
Angela Rayner, who is also the housing secretary, said that although the steel industry had endured a “very difficult time” in recent years, the government remained “committed” to supporting it into the future.
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Sir Keir Starmer’s deputy sought to reassure steel workers and businesses in the wake of the American president announcing 25% tariffs on all steel and aluminium imports into the US.
British steel exports to the US are worth about £400m and aluminium exports have been worth about £300m over recent years.
Speaking to broadcasters, Ms Rayner said British steel had been through a “very difficult time” but “absolutely […] has a future”.
She said Labour’s plans to rip up planning rules and get Britain building more homes and infrastructure mean domestic steelmakers have a “crucial role to play”.
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“Well, we know that British steel has been through a very difficult time, and our business secretary has been working hard with the industry to make sure that we have a future for British steel,” she said.
“But this government is committed to supporting that industry into the future.”
She continued: “We’ve been doing that already. We will continue to do that.”
Addressing Mr Trump’s decision to impose tariffs on steel and aluminium imports, she added: “Obviously, we’ll have to see what comes out of the US and what that means to UK steel.
“We absolutely believe that British steel has a future. We’re investing in British steel, we’re working with the industry and of course our infrastructure and long-term planning that we’re doing around rebuilding in Britain. British steel has a crucial role to play in that too.”
The US president announced the taxes on foreign steel and aluminium late on Monday, saying they will be enforced “without exceptions or exemptions”.
UK Steel said the tariffs “would be a devastating blow to our industry” and accused Mr Trump of taking “a sledgehammer to free trade, with huge ramifications for the steel sector in the UK and across the world”.
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However, trade minister Douglas Alexander urged a “cool and clear-headed” response from the industry rather than a “knee-jerk” reaction.
Speaking in the Commons on Tuesday, he said the UK “stands ready” to find solutions that work for both countries.
He said the US had so far only published details about tariffs on steel, not on aluminium.
Mr Alexander confirmed the business secretary, Jonathan Reynolds, would be meeting the steel industry and trade unions “within the next 24 hours”, adding the UK has historically “benefited from a strong and balanced trade relationship with the United States worth around £300m”.
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The MP, who is also a Cabinet Office minister, said it was “right and reasonable to be mindful” of what Mr Trump has said and to “undertake analysis”.
The US president “has a speciality in generating uncertainty – it’s part of his style of negotiations”, he added.
In addition to the negative impact that could be felt from Mr Trump’s tariffs, steel workers have also been hit by job losses at a giant Tata steel plant.
Up to 2,800 jobs at Tata Steel are expected to be axed at the country’s biggest steelworks in Port Talbot as the company transitions to a greener form of steel production which requires fewer workers.
The government has sought to compensate the supply chain businesses and workers affected by changes at Tata’s Port Talbot site in south Wales with a fund of millions of pounds.
