British Steel Faces Furnace Closure Amid U.S. Tariffs and Environmental Costs

British Steel, owned by China's Jingye Group, warns of potential closure of two blast furnaces in Scunthorpe due to U.S. tariffs and high environmental costs. The closures could jeopardize up to 2,700 jobs. Negotiations with the government for funding to replace furnaces with greener alternatives remain unresolved.

British Steel, a company with deep roots in the industry, could shutter its two blast furnaces as early as June, risking the livelihoods of up to 2,700 employees. The firm's Scunthorpe operations have been hit hard by U.S. tariffs and escalating environmental costs, making them financially unsustainable.

Since U.S. President Donald Trump introduced 25% global tariffs on steel imports on March 12, British Steel's operations have faced severe financial strain, with the company reporting daily losses of £700,000. Despite discussions with the government regarding financial aid to transition to greener electric arc furnaces, no agreement has been reached.

British Steel's annual exports to the U.S. are valued over £400 million, comprising approximately 5% of UK steel exports. As consultations with unions begin, the company remains in talks with the government to secure its future and explore sustainable options.

(With inputs from agencies.)