{"id":7537,"date":"2025-10-05T09:43:27","date_gmt":"2025-10-05T06:17:43","guid":{"rendered":"https:\/\/steelworldreview.com\/tata-buys-steel-slabs-from-british-rival-to-circumvent-trump-tariffs\/"},"modified":"2025-10-05T09:52:44","modified_gmt":"2025-10-05T06:22:44","slug":"tata-british-steel-slabs","status":"publish","type":"post","link":"https:\/\/steelworldreview.com\/en\/tata-british-steel-slabs\/","title":{"rendered":"Tata bought slabs from rival British Steel as it sought to beat Trump tariff plans"},"content":{"rendered":"<p style=\"text-align: justify;\">Sale of product from Scunthorpe plant came when Indian-owned firm tried to avoid US rules that were later dropped<br \/>British Steel has made the unusual move to sell slabs of metal to its rival Tata Steel, as the latter sought ways around Donald Trump\u2019s proposed tariff rules.<br \/>\nThe Scunthorpe steelworks in north Lincolnshire \u2013 now controlled by the UK government \u2013 provided slabs made in its blast furnaces to Tata\u2019s operations in south Wales in recent months, according to steel industry sources.<br \/>\nIndian-owned Tata was seeking ways to avoid threatened US tariffs on steel not sourced from the UK while its Welsh operations were reliant on buying slabs from elsewhere. However, the proposed rules were later dropped after the UK and US failed to reach an agreement. <\/p>\n<p style=\"text-align: justify;\">\nThe UK government took control of British Steelin April amid fears that its Chinese owner, Jingye Steel, was preparing to walk away and leave irreparable damage.<\/p>\n<p>Since taking control, the government has directed British Steel to increase output and hire more workers. Jingye claimed the blast furnaces at Scunthorpe \u2013 the last in Britain able to make steel from iron ore \u2013 had been losing \u00a3700,000 a day.<br \/>Ramping up production was seen by some people as a way to improve profitability and ease the financial burden on the government. Earlier this month the government said it had injected \u00a3180m into British Steel to pay for raw materials, salaries and unpaid bills.   <\/p>\n<p>&nbsp;<\/p>\n<p><a href=\"https:\/\/steelworldreview.com\/wp-content\/uploads\/2025\/10\/76.jpg\"><img decoding=\"async\" class=\"aligncenter wp-image-7518 size-full\" src=\"https:\/\/steelworldreview.com\/wp-content\/uploads\/2025\/10\/76.jpg\" alt=\"\" width=\"640\" height=\"360\" srcset=\"https:\/\/steelworldreview.com\/wp-content\/uploads\/2025\/10\/76.jpg 640w, https:\/\/steelworldreview.com\/wp-content\/uploads\/2025\/10\/76-300x169.jpg 300w\" sizes=\"(max-width: 640px) 100vw, 640px\" \/><\/a><\/p>\n<p style=\"text-align: justify;\">\nThe decision by Tata, which owns the vast Port Talbot steelworks in south Wales, to buy metal from Scunthorpe is a relatively unusual move by rival companies to work together.<br \/>\nTata \u2013 whose parent company is also dealing with the fallout of a cyber-attack at Jaguar Land Rover \u2013 closed its blast furnaces a year ago in order to build cleaner electric arc furnaces. While awaiting the completion of those furnaces, Tata had planned to import slabs from its other plants in the Netherlands and India to be rolled into sheets in its Welsh factories to be made into food tins and car bodies. <\/p>\n<p style=\"text-align: justify;\">\nThe purchase was attractive for Tata as the company, headquartered in Mumbai, sought ways around proposed US trade rules, according to steel industry sources. Trump had agreed to cut tariffs on UK steel to 0%, but with proposed rules that steel would have to be \u201cmelted and poured\u201d in the UK to qualify.<br \/>\nDespite Trump\u2019s initial assent to the 0% deal, US officials held up the implementation because of concerns that other countries would use the UK as a back door to get around tariffs.The UK government eventually concluded that it would not be able to reach a 0% deal, and the talks were abandoned this month. <\/p>\n<p>&nbsp;<\/p>\n<p><a href=\"https:\/\/steelworldreview.com\/wp-content\/uploads\/2025\/10\/78-1.jpg\"><img decoding=\"async\" class=\"aligncenter wp-image-7524 size-full\" src=\"https:\/\/steelworldreview.com\/wp-content\/uploads\/2025\/10\/78-1.jpg\" alt=\"\" width=\"640\" height=\"360\" srcset=\"https:\/\/steelworldreview.com\/wp-content\/uploads\/2025\/10\/78-1.jpg 640w, https:\/\/steelworldreview.com\/wp-content\/uploads\/2025\/10\/78-1-300x169.jpg 300w\" sizes=\"(max-width: 640px) 100vw, 640px\" \/><\/a><\/p>\n<p style=\"text-align: justify;\">\nUK steel exports to the US now attract 25% tariffs, significantly lower than the 50% imposed by Trump on every other importer. The 25% tariff does not include \u201cmelted and poured\u201d restrictions.<br \/> <br \/>\nNewly appointed Trade Secretary, Peter Kyle, is expected to visit the Scunthorpe plant in the coming weeks. However, there is still hope for an agreement with Jingye for its exit by the end of the year.<\/p>\n<p style=\"text-align: justify;\">\nJingye is expected to demand compensation of up to \u00a31 billion\u2014a figure that includes its total investment since purchasing British Steel in 2020. Steel industry sources believe receiving such an amount is unlikely.  <\/p>\n<p style=\"text-align: justify;\">\nA Tata spokesperson said: &#8220;We have collaborated with British Steel for years when needed to supplement our slab production. Since moving to the reroller model&#8230; this supply relationship has continued with British Steel, as well as other reputable steel companies in Europe and beyond.&#8221;  <\/p>\n<p style=\"text-align: justify;\">\nLisa Coulson, Chief Commercial Officer at British Steel, said: &#8220;We have been working closely with the government in recent months to improve operational performance.&#8221;<br \/>\nA government spokesperson said: &#8220;We are cooperating with Jingye to determine the best long-term future for Scunthorpe while simultaneously negotiating with the US for the lowest possible tariff on steel and aluminum exports to strengthen our position as a reliable source of high-quality steel.&#8221; <\/p>\n","protected":false},"excerpt":{"rendered":"<p>Sale of product from Scunthorpe plant came when Indian-owned firm tried to avoid US rules that were later droppedBritish Steel has made the unusual move to sell slabs of metal to its rival Tata Steel, as the latter sought ways around Donald Trump\u2019s proposed tariff rules. The Scunthorpe steelworks in north Lincolnshire \u2013 now controlled [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":7521,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jnews-multi-image_gallery":[],"jnews_single_post":[],"jnews_primary_category":[],"jnews_review":[],"enable_review":"","type":"","name":"","summary":"","brand":"","sku":"","good":[],"bad":[],"score_override":"","override_value":"","rating":[],"price":[],"jnews_override_counter":{"view_counter_number":"0","share_counter_number":"0","like_counter_number":"0","dislike_counter_number":"0"},"footnotes":""},"categories":[240],"tags":[389,756],"class_list":["post-7537","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-world_steel_news","tag-steel-world-review","tag---en"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.8 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ 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