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Tata Bought Steel Slabs from Rival British Steel Amid Trump Tariff Threat

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Construction 30 Sep 2025 05:20 PM IST Economic Times

Tata Steel UK purchased steel slabs from rival British Steel’s Scunthorpe plant to navigate risks tied to former US President Donald Trump’s proposed steel tariffs.

With Tata’s Port Talbot blast furnaces closed as part of its transition to electric arc furnaces, the company sought alternative UK-origin slab supplies. Sourcing from Scunthorpe ensured compliance with the US requirement that steel must be “melted and poured” in Britain to avoid higher tariffs.

Although Trump initially signaled a tariff cut to 0% for UK steel, negotiations failed, leaving British exports facing a 25% duty—still lower than the 50% imposed on other foreign suppliers.

British Steel, under UK government control after Chinese owner Jingye Steel’s planned exit, supplied slabs despite heavy daily losses of £700,000 at Scunthorpe. The deal highlighted rare cooperation between rivals as both firms confronted trade challenges and industrial restructuring.