UK government has moved up plans for an investment worth £2.5 billion in the steel sector after Donald Trump announced a 25% tariff on steel and aluminium imports to the United States.

Business Secretary Jonathan Reynolds is releasing the Plan for Steel green paper on Sunday, weeks earlier than planned, as it points to the urgency generated by Trump’s action. UK sells about 209,000 tonnes of steel to the US each year, making it the second-largest market behind the EU.

Related News

“It’s obviously an added challenge, but it’s more reason why pushing forward with the strategy is that much more essential,” said Reynolds, who insisted that it remains the government’s priority to boost the local steel industry. Though the EU and Canada threatened countermeasures, the UK has not as yet, opting to seek a diplomatic solution instead.

Industry chiefs fear US tariffs may choke off British steel exports and interfere with trade. UK Steel director general Gareth Stace said the tariffs risk undermining more than £400 million of annual steel exports at a time when global protectionism is on the rise.

The £2.5 billion government plan, first outlined in Labour’s election manifesto, will fund pioneering private sector schemes jointly, keeping the steel industry as a major supplier for large UK infrastructure projects. Electric arc furnaces will be partly funded from some of the money, lessening dependence on fossil fuels.

Heathrow Airport has committed to utilizing British steel in its biggest-ever investment scheme, including possible expansion works such as a third runway.

As tensions rise, Liberal Democrat leader Ed Davey called on Prime Minister Keir Starmer to be more robust in opposing Trump’s tariffs. But Starmer insisted on a balanced approach, saying the government would act in the national interest but with a priority for UK steelworkers.

The green paper will tackle long-term industry issues, such as high energy prices and recycling scrap metal, in a bid to ensure a sustainable future for UK steel.