Steel tariff agreement between Washington and London threatens Chinese ownership of British factories

The United States has set certain conditions for implementing its offer to reduce tariffs on steel imports from Britain, raising further doubts about the Chinese company Jingye Group's ownership of British Steel. According to the framework agreement announced by US President Donald Trump and Prime Minister Keir Starmer, the United States will offer a quota of British steel imports at reduced tariffs once Britain meets unspecified requirements regarding supply chain security and "the nature of ownership of relevant production facilities." This warning indicates how Trump is seeking to exploit his trade negotiations with other countries to limit China's economic influence. The British government announced de facto control of British Steel last month to prevent the closure of two of its furnaces, but the loss-making company remains owned by the Chinese company Jingye. Bloomberg News reported that the agreement stipulates that the United States will "immediately" set a quota for steel imports from Britain, provided it is satisfied that its conditions are met. The size of the quota and the timeline for its implementation remain unknown. Removing the 25% US tariff on steel was one of Starmer's main goals before starting negotiations with the Trump administration. The British steel industry was already struggling before the tariffs were imposed, under pressure from rising energy costs and serious competition from cheaper Chinese imports. According to the British Steel Association, Britain exports approximately 200,000 tons of steel annually to the United States, worth more than £400 million ($532 million). The association described the tariffs as a "devastating blow" to the sector.