US-UK Trade Agreement imposes conditions on ownership of UK steel mills | Steel Industry

The United States imposes conditions on the “ownership nature” of British plants as part of its efforts to freeze Chinese steel.

It is understood that Donald Trump's administration has urged the requirement to be attached to the steel deal to ensure that Beijing does not use the Chinese-owned British steel factory as a backdoor to bypass U.S. tariffs.

Government sources say Washington is believed to be reassured that Scunthorpe is now actually controlled by Business Secretary Jonathan Reynolds and is likely not to return under the guidance of its Chinese owner Jingye Group.

But before the British government seized control of British steel last month, the United States had been concerned that the Scunthorpe factory could have been used as a basis for handling Chinese steel to take advantage of lower tariffs.

The US-UK deal agreed on Thursday has already given relief to the automotive and steel industries, and while some terms remain unclear, people are concerned about unemployment. If conditions are met, it will reduce the tariffs on cars to 10% and the steel tariffs reach zero.

The deal immediately blocked losses in work at the Jaguar Land Rover plant in the West Midlands, said Peter Mandelson, the UK ambassador to the United States. "This deal saved these efforts," Mandelson said in a CNN interview. "It seems to me that this is a big achievement and I'm glad the president signed it."

Government sources said JLR plans to lay off employees of 30,000 UK employees but did not notify the union, hoping to reach a deal with the United States to eliminate the 25% tariff on U.S. car exports.

Keir Starmer told ITV on Friday that the deal will be "measured in the work that will be protected, preserved and will flourish" by steel, automotive and pharmaceutical companies.

Government sources said the UK is still working with the U.S. to define the exact requirements for allowing tax-free steel quotas, viewing the security of supply chains and ownership so that the deal can be filed as soon as possible.

The text of the agreement clearly states that U.S. steel tariffs can only reduce U.S. steel tariffs by 25% only when certain U.S. requirements are met when certain U.S. requirements are met.

It said: "Understanding that the UK will meet these requirements, the US will quickly build quotas for the UK steel and aluminum exchange rates in the most favorable countries (MFNs), as well as certain derivative steel and aluminum products."

U.S. Commerce Secretary Howard Lutnick boasted on Thursday: "The British government is the British steel for this deal."

British sources said the United States did not push Britain to state-owned British steel but was impressed by the actions taken by Chinese owners before Easter.

Chrysa Glystra, director of trade and economic policy at the UK Steel Agency, said: “The terms of the deal highlight many basketballs before the UK steel industry can see the benefits of the deal.”

The UK exports about 200,000 tons of steel to the United States every year, worth about 400 million pounds.

Glystra said it was unclear what or when the terms and conditions of the exemption were to begin, highlighting the admissions of government sources who reached a quick deal to “bank progress” and save jobs in the automotive industry.

“To fully assess the impact on our industry, we will need to fully understand the supply chain conditions that need to be met, how to define quotas and when to take effect,” Glystra added.

Trump now turns his attention to the first deal negotiations between the United States and China in Geneva on Saturday, saying: "(the final details of the UK deal) will be written in the next few weeks."

There are reports that the deal actually gave the U.S. a veto on Chinese investments in the UK sector covered by the exchange, but there are no 10 facts that are not the case.