Multi-billion pound investment in Heathrow expected to secure thousands of British Steel jobs amid Trump tariffs

UK Steel warned this “would be a devastating blow to our industry”, which is already battling against cheap Chinese imports.

Just days after Mr Trump announced the tariffs, the Department for Business and Trade unveiled the new investment in Heathrow which it says will drive a significant increase in demand for UK steel.

At British Steel’s Scunthorpe plant today, airport bosses will sign the UK Steel Charter, which signals the airport’s commitment to use UK-made steel wherever possible as part of its investment programme.

The Government has claimed this will secure thousands of existing steel jobs, both at Scunthorpe and across the country.

Industry Minister Sarah Jones will give a keynote speech at British Steel today, to welcome the announcement.

She is expected to say: “This investment is the latest in a long line of wins which our plan for change has helped deliver, and not only secures thousands of jobs but marks a major vote of confidence in our homegrown steel sector and this government’s Industrial Strategy.

“Driving demand for UK-made steel is a crucial part of our upcoming Steel Strategy, and by signing the Steel Charter Heathrow will give a huge boost to steelmaking communities across the UK and help us kickstart economic growth.”

The Government is set to publish its Steel Strategy this spring, and has announced an investment fund of up to £2.5bn which companies can bid into.

Heathrow is set to invest billions in a new expansion programme for new terminal buildings, aircraft stands, passenger infrastructure and its third runway plans, which was recently backed by Chancellor Rachel Reeves.

The Government has estimated that any new runway could require 400,000 tonnes of steel.

Alex Veitch, of the British Chambers of Commerce said: “Expanding airport capacity is a key part of accelerating economic growth – and today’s announcement is great news for British business.

“It is a real show of support for domestic steel production and supply chains across the UK.

“As further infrastructure projects are given the green light, many more opportunities can be seized to boost British business and drive forward growth.”

It comes as Trade Minister Douglas Alexander has said the Government would adopt a “cool and clearheaded” approach rather than rushing into retaliatory measures against Mr Trump.

Figures from trade body UK Steel showed that in 2024 some 162,716 tonnes were sent to the US, but that does not yet include data from December.

The US is the industry’s second-largest export market after the EU, although the Government said it only accounted for 5 per cent of UK steel exports in 2023.

UK Steel director general Gareth Stace said tariffs “would be a devastating blow to our industry” and “damage over £400 million worth of the steel sector’s contribution to the UK’s balance of trade”.

The industry body dismissed the president’s claim that steel imports from Australia, the EU, Japan, and the UK rose from 18.6 per cent in 2020 to 20.7 per cent in 2024 because it ignored the demand-lowering impact of the Covid-19 pandemic.

UK steel exports to the US were actually 14% lower in 2024 than in 2018 when tariffs were introduced by Mr Trump in his first term in the White House.

Mr Stace said: “President Trump has taken a sledgehammer to free trade, with huge ramifications for the steel sector in the UK and across the world.

“This will not only hinder UK exports to the US, but it will also have hugely distortive effects on international trade flows, adding further import pressure to our own market.

“UK steel poses no threat to US national security. Our high-quality products serve key US industries, many of which cannot source these domestically.

“This is a moment where our countries should work together to tackle global steel overproduction, not to be at loggerheads.”

Alasdair McDiarmid, assistant general secretary at the Community union, which represents many steelworkers, said: “The new tariff confirmed by Donald Trump is a huge cause for concern, and represents a retrograde step for the steel industry and economies on both sides of the Atlantic.

“There is now an even greater need for comprehensive safeguards to protect our domestic steel from cheap overseas steel imports.”