**UK Steel Ownership Not Required for US Tariff Deal, Says Starmer**
Prime Minister Keir Starmer has stated that the UK does not need to remove British Steel’s Chinese ownership to negotiate a reduction in US tariffs on steel. During a press conference at the G7 summit in Canada, Starmer acknowledged that there is still “further work to do in relation to steel” in discussions with President Donald Trump, but emphasized that changing the ownership of British Steel is not a prerequisite.
This statement follows the recent announcement of a finalized trade deal between Starmer and Trump, which will enable the UK to avoid the elevated tariffs that the US is imposing on other nations. The primary terms of the agreement, initially established in May, grant the US increased access to the UK’s beef and ethanol markets in exchange for lower tariffs on UK steel and automobiles exported to the US.
While the two leaders agreed to reduce tariffs on UK cars from 27.5% to 10% and exempt Britain’s civil aerospace sector from Trump’s standard 10% tariff, steel was notably excluded from these discussions. The US has insisted that the UK fulfill its “requirements on the security of the supply chains of steel and aluminum,” which includes stipulations regarding the ownership of relevant steel plants. These conditions were part of both the original May agreement and the recent deal, leading to speculation about the implications of British Steel being owned by China’s Jingye Group, despite the UK government having taken operational control of the struggling company earlier this year.
Starmer dismissed concerns regarding ownership, stating, “There’s further work to do in relation to steel, but we’re getting on and doing that work, and that doesn’t require us to change the ownership of British Steel.” He also mentioned that the tariff reductions for cars and aerospace would be implemented “within days.”
UK Business and Trade Secretary Jonathan Reynolds highlighted that the main challenge lies in the “melt-and-pour” provisions, which require steel to be melted and poured in the UK to qualify for preferential tariff rates. This requirement is becoming increasingly difficult for UK steel manufacturers to meet, especially since British Steel operates the country’s last remaining blast furnace, following the closure of Tata Steel’s facility last year. A new electric arc furnace capable of producing steel from scrap is not expected to be operational until late 2027.
Allie Renison, director at SEC Newgate and a former adviser to the previous government’s business and trade secretary, noted that while the Biden administration also imposed conditions for steel to be melted and poured in exporting countries, there were product-specific exemptions that the UK benefited from due to its niche orders from US customers.
In summary, while negotiations continue regarding steel tariffs, the UK government maintains that ownership changes are not necessary for a successful trade agreement with the US.
**FAQ**
**Q: Will the UK have to change the ownership of British Steel to reduce US tariffs?**
A: No, Prime Minister Keir Starmer has stated that changing the ownership of British Steel is not required to negotiate a reduction in US tariffs on steel.
