The UK government, under the leadership of Keir Starmer, is actively considering the nationalisation of British Steel in response to the adverse effects of Donald Trump's tariffs.

This potential nationalisation is part of broader discussions aimed at safeguarding jobs and the steel industry, especially as the current owners, the Chinese firm Jingye, are contemplating closing two blast furnaces.

Starmer's government is particularly focused on securing the future of the Scunthorpe plant, which is vital for the UK’s steel supply and employs approximately 3,500 people.

Starmer has expressed that he does not consider Trump's tariffs a temporary issue and is prepared to retaliate if necessary, while also pursuing negotiations to alleviate their impact.

The tariffs imposed by Trump include a 10% levy on British goods and a 25% tariff on cars, creating significant challenges for the UK steel industry.

In anticipation of potential further tariffs, the UK has compiled a comprehensive list of products that could be affected, totaling 417 pages.

During a recent Steel Council meeting, Industry Minister Sarah Jones reiterated the government's commitment to the steel sector, emphasizing that action is being taken to support UK steelmaking.

While the government is exploring various options, the preferred strategy remains to support British Steel as a viable commercial entity rather than outright nationalisation.

Starmer's administration aims to enhance the resilience of the UK economy without resorting to large-scale cash spending, focusing instead on reducing barriers to economic growth.

In addition to considering nationalisation, the UK government is negotiating with the White House to reduce existing tariffs on British goods, including those affecting steel.

Polling data reveals that two-thirds of Britons are concerned about the tariffs and show strong support for retaliatory measures by the UK government.

The urgency for nationalisation discussions has intensified following the failure of financial support talks and the ongoing impact of US tariffs on British steel imports.