The U.S. has made no secret of its antagonism towards China, and Trump’s America First investment policy explicitly warns firms against getting too close to Beijing.
“There’s no doubt that taking British Steel back into British hands from Chinese ownership will be received favorably by the Trump administration, not least of all because the U.K. makes several steel components for the U.S. defense industry,” said Australian Strategic Policy Institute (ASPI) U.K. Foreign Policy Lead Sophia Gaston.
Ministers insist that the deal is unrelated to tariff negotiations, but it could give the U.K. a stronger argument to say it should be exempt from U.S. levies, said Sam Hogg, Founder of British Diplomacy Tracker.
“Trump has talked about reviving the U.S. shipbuilding sector,” he said. “British Steel produces steel that could be used in that revival. Obviously, there’s tariffs in place right now, but as part of that negotiating strategy, you could say we’ve nationalized, we want to export to help you rebuild your fleets, which is a clear win-win for both of us.”
Although British Steel doesn’t directly supply to defense (like ships and aerospace), it’s critical to wider infrastructure and resilience, including hangars for aircraft and buildings on military bases.
Reform on the march
With local elections fast approaching, an emboldened Reform UK — led by Nigel Farage — has meanwhile seized the moment to paint itself as the party of betrayed blue-collar towns, calling for the full nationalization of the firm.
