A major steel company is citing tariffs as the reason behind the potential shutdown of its two blast furnaces, which could leave the United Kingdom as the only G7 nation without its own steel production.
According to The Telegraph, British Steel, owned by Chinese steel group Jingye, plans to close its two blast furnaces in England. This move jeopardizes 2,700 jobs and could mark the end of steel production in the UK after 150 years. Jingye acquired British Steel in 2020.
Jingye stated that the “imposition of tariffs” has rendered the blast furnaces and steel-making operations “no longer financially sustainable.”
Tariffs on steel and aluminum imports to the United States, implemented by the previous administration, recently went into effect.
Jingye reports investing billions since 2020 to maintain operations, but losses have escalated to hundreds of thousands of dollars per day.
The closures could have implications for national security.
Energy minister Sarah Jones stated, “There is a reason why Russia bombed all the blast furnaces in Ukraine pretty much straight away; because countries need steel not just for defense but to build the roads and the infrastructure.”
Community union general secretary Roy Rickhuss urged, “We urge Jingye and the government to get back around the table to resume negotiations before it is too late.”
He added, “Given that we are now on the cusp of becoming the only G7 country without domestic primary steelmaking capacity, it is no exaggeration to say that our national security is gravely threatened.”
The former U.S. President has been vocal about keeping U.S. Steel under American ownership. Nippon Steel, a , has offered to increase its investment in U.S. Steel facilities to $7 billion in an attempt to convince the former U.S. President that the Pittsburgh steelmaker would be well-managed under foreign ownership.
“We are also going to keep U.S. Steel right here in America,” the former U.S. President said at a campaign rally in September 2024.
After initially opposing the deal in February 2024, the former U.S. President stated earlier this year that Nippon would negotiate an investment in U.S. Steel rather than a purchase, according to the Pittsburgh Post-Gazette.
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