The US has imposed conditions on the ownership of British steel plants in a bid to counter Chinese steel imports. The steel deal includes provisions to prevent Chinese-owned British Steel from being used as a loophole to evade US tariffs. Under the agreement, the Scunthorpe plant in the UK is now reportedly controlled by British authorities, easing US concerns about Chinese influence.
The US-UK trade deal, finalized recently, offers relief to industries like automotive and steel, averting potential job losses. Key aspects of the agreement include reducing car tariffs to 10% and eliminating steel tariffs with certain conditions. The deal has already safeguarded jobs at Jaguar Land Rover and is expected to protect thousands more across various sectors.
Both nations are collaborating to define specific criteria for tariff-free steel exports, focusing on supply chain security and ownership. The agreement stipulates that US steel tariffs will decrease contingent upon the UK meeting specified requirements related to supply chain security and ownership of production facilities.
US Commerce Secretary Howard Lutnick praised the UK for nationalizing British Steel as part of the deal, highlighting the actions taken against its Chinese owners. However, there are still details to be clarified regarding the terms of the tariff exemption and its implementation timeline.
Overall, the trade deal signifies a significant step towards bolstering trade relations between the US and UK while addressing concerns over Chinese influence in the steel industry.
