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New European
2 days ago
- Business
- New European
Britain enters a new nuclear age
Alongside an ambitious plan to build up to 12 new attack submarines, and to create jobs in six new ammunition factories, one of the most striking commitments is to enter discussions with the USA aimed at 'enhanced participation in Nato's nuclear mission'. This innocuous sounding sentence represents a big change in nuclear posture. Make no mistake: today's Strategic Defence Review marks the start of British rearmament. Not only does it signal the UK's commitment to increase defence spending to 3% of GDP, but to a type of spending designed to enhance the UK's strategic clout in the world. At present, only Belgium, Germany, Italy and the Netherlands host US-owned tactical nuclear bombs, with their aircraft designed to be 'dual capable' of delivering such bombs on target. The UK, which lacks tactical nuclear weapons, could now volunteer to do likewise, but would need to buy a different variant of the F-35 combat aircraft than the one that is flown from the Royal Navy's carriers. That would be a major change in nuclear policy – because the British deterrent has, since the 1990s, been strategic-only. As I've argued here before, we need a wider range of options because Putin is now making regular threats to use nukes against Nato, and tactical nukes against Ukraine – so it makes sense to place more of Nato's collective nuclear armoury closer to the front line, and distributed among a larger number of allies. Over and above deterring Russian aggression, almost everything Labour has announced today looks designed to achieve three things: to boost Britain's influence among its allies, to deliver high skilled jobs to places where they are scarce, and to get ahead of the game in the military technologies of the future. These don't only include drones – though the spectacular Ukrainian strike on Russia's strategic bomber fleet on Sunday shows that we've hardly even begun to understand their power. The technological arms race is now focused on niche areas of science – like nanotech, materials and quantum computing – and Labour, to its credit, has understood that it in any conflict with Russia it is the science labs of Oxbridge, Imperial and Edinburgh, not the 'playing fields of Eton', that might be decisive. Suggested Reading We must take a nuclear leap into the unknown Paul Mason For the armed forces, often bound by tradition and prone to inter-service rivalry, making the SDR work will be a challenge. Because in every domain of warfare – land, air, sea, space and cyberspace – they face the same problem: they are running decades-old kit designed for an era when Britain could choose which wars it fights, while at the same time moving to a completely new, digitally enabled way of fighting, in which technological change never stops. In this context, faced with a Russia that has turned itself into a war economy, and itself learned to innovate rapidly – deterrence comes down to showing Putin that our own industry, science and digital technology base could crank itself up to speed, and indeed surpass what Russia itself could achieve. For me, the most basic task of the SDR was to assess the scale of the Russian threat and offer the electorate an honest proposal of how to meet it – within our means. Though it might sound simple to achieve, it was not achieved at any point during 14 years of Conservative government, above all after 2020, when Boris Johnson and Dominic Cummings declared a 'tilt' of security priorities towards Asia, while systematically underfunding the ministry of defence. Labour reversed that stance, declaring from day one that its priority is: 'Nato First'. The SDR places maritime warfare as the highest priority and designates the Atlantic and the Arctic as the UK's prime areas of interest. There's been a row today over the precise form of words Keir Starmer is using – describing the 3% target in the 2030s as an ambition. I think it's clear that Labour means to find the money to achieve that – but it stands way outside the term of UK fiscal forecasting, and no chancellor would allow it to be stated as a firm commitment outside of a budget statement. The real question with the SDR is: do the capabilities match the threats? The answer is: only if you believe Russia can be deterred through Nato remaining cohesive and the UK leading an enhancement of continent-wide nuclear deterrence. If it cannot, then 3, 4 or even 5% won't be enough. In 1939, after seven years of rearmament, Britain's defence budget was 9% of GDP – and once war broke out it rose above 50%. Today's focus on the big stuff – submarines, which are the capital ships of the 21st century, and a £15bn upgrade to nuclear warheads – reflects Starmer's determination for this country to avoid any impression that it wants to be 'Little Britain'. With a cash-strapped treasury, it is a decision to spend on what's strategic, and rely on allies for that which is not. There is even the promise, thinking long term, to specify within this parliament a replacement for the Dreadnought submarines, currently being built at Barrow: and they don't even go out of service until 2050. I would like to have seen more spending and faster – above all because defence industrial investment is one of the surest ways to boost growth and social cohesion in communities that have seen too little of it. But until Labour can win the argument with the British people that they need to pay more tax, and tolerate more borrowing to fund defence, progress is going to be incremental. That, in turn, will depend on the outcome of Ukraine's peace negotiations with Russia. If they fail – and that looks likely – people may wake up to the fact that the prospect of endless war on our doorstep requires a change of attitude to defence. In that sense, the SDR was the start, not the end, of something.
The Courier
3 days ago
- Business
- The Courier
Mark Ogren shares 2 ways Rangers takeover could benefit Dundee United
Mark Ogren is hopeful the San Francisco 49ers-linked takeover of Rangers will be good for Scottish football. And Dundee United's American owner has revealed two ways he believes the Tangerines could benefit. The purchase of a controlling interest in the Gers by an American consortium linked to the investment arm of NFL giants, the 49ers, has increased the number of US-owned Scottish clubs to seven. The Ibrox outfit have joined United, Dundee, St Johnstone, Dunfermline, Hibs and Livingston in being chaired from 'across the pond', with Aberdeen also owned by a US-based Scot. And in discussion about his experiences as Tannadice owner, Ogren shared his hopes for how the Rangers buyout could impact the Scottish game. 'I'm hoping the 49ers being involved is going to increase the exposure,' he said. 'But there is definitely scope to increase the revenue. The TV deal is a big thing, but also the culture. The alcohol situation continues to bother me.' Ogren has spoken on a number of occasions about his belief that fans should be able to buy alcoholic beverages at matches. St Johnstone's American owner Adam Webb has echoed his United counterpart's sentiments. And nothing has happened to alter Ogren's position on what, in the States and England, is an entirely normal part of the matchday experience. 'It's absurd,' said Ogren. 'It's a touchy subject, but it is part of the entertainment value for people who come to matches, and they should be able to buy a beer.' The United owner also acknowledged the importance to his club of qualifying for Europe, which they did last season for the second time under his ownership. 'Celtic and Rangers are in a different financial class than all of us, quite frankly, but there's still three European spots in most years that are available. The ramifications of getting into Europe can be really big.'
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Business Standard
5 days ago
- Business
- Business Standard
Will double tariffs on foreign steel from 25% to 50%, says Trump
By Josh Wingrove and Joe Deaux President Donald Trump said he would be increasing tariffs on steel and aluminum to 50 per cent from 25 per cent, saying the move would help protect American workers, as he visited a United States Steel Corp. plant on Friday. Trump had gone to the plant near Pittsburgh to champion an expected deal between US Steel and Japan's Nippon Steel Corp. as one that would ensure the iconic American firm remains US-owned and operated, even as many details on the agreement remain vague. He said the steel tariff increase would benefit the new venture's American operations. 'I believe that this group of people that just made this investments right now are very happy, because that means that nobody's going to be able to steal your industry,' Trump said. 'It's at 25 per cent, they can sort of get over that fence, at 50 per cent they can no longer get over the fence.' Trump announced the increased steel tariffs at the event and said he would also raise aluminum rates in a post to his Truth Social platform after the rally. The post said the new rates would become 'effective Wednesday, June 4.' The tariff announcement capped a tumultuous stretch that saw a trade court rule his sweeping 'reciprocal' tariff regime illegal, only for an appeals court to offer a stay keeping the levies temporarily in place. Earlier Friday, Trump also registered his frustration with China — which he accused of reneging on a tariff truce negotiated earlier this month — raising the prospect of additional import taxes. The new 50 per cent level also offers a backstop for Trump's promise that the US Steel-Nippon deal, which he opposed on the campaign trail, would benefit steelworkers in the critical battleground state of Pennsylvania. The deal was opposed by the United Steelworkers, who worried Japanese ownership could see capacity reduced and jobs shifted to other plants. 'There's a lot of money coming your way,' Trump added, as he spoke in front of signs reading 'The Golden Age' — a reference to the economic boom he says his policies will unleash — as well as 'American Steel' and 'American Jobs.' Shares of other US steel companies including Nucor Corp., Cleveland-Cliffs Inc. and Steel Dynamics Inc. rallied in after-hours trading. Cleveland-Cliffs shares jumped more than 15 per cent, while Steel Dynamics and Nucor are up at least 5 per cent. Trump said US Steel workers would receive a $5,000 bonus soon and that $2.2 billion of the $14 billion proposed investment would be earmarked to increase steel production at the Mon Valley Works plant where he was speaking. Trump said $7 billion would be spent to modernize steel mills, expand ore mining and build new facilities in Indiana, Minnesota, Alabama and Arkansas. He also said US Steel wouldn't announce layoffs or outsourcing and that its blast furnaces will remain at 'full capacity' for at least 10 years. The US imports about 17 per cent of its steel needs, according to figures from Morgan Stanley, with the majority coming from Canada, Brazil and Mexico. Construction companies have warned levies are likely to increase the cost of critical building materials, reducing the supply and increasing the cost of new housing. The event had the tone of a victory lap, with Trump receiving a Pittsburgh Steelers jersey and a golden hard hat during his visit, but despite the celebratory tone, critical details on the deal were unclear ahead of Friday's event. Investors are eager for any insight into the agreement a week after he first announced that he would approve the deal. Trump's decision marked a stunning reversal on a transaction that he had fiercely opposed on the campaign trail, but the president cast the shift as coming with concessions from Nippon Steel that benefitted steelworkers. 'Every time they came in, the deal got better and better and better for the workers,' Trump said, stressing that US Steel would remain headquartered in Pittsburgh. The president last week cast it as a 'planned partnership' bringing investments to the US — not as an outright sale of an American company. Even after Trump's announcement last week, work continued on the terms, including what veto powers the US government will retain over the board of the US Steel subsidiary. The Friday event offers to cap what has been a politically contentious and tumultuous path for Nippon Steel's bid to purchase an iconic American firm — a lengthy saga that left both companies in limbo. Nippon Steel initially proposed a $14.1 billion transaction for US Steel. 'The commitments have been made,' Representative Dan Meuser, a Pennsylvania Republican, said in an interview at the Irvin Works site ahead of Trump's remarks. 'They're not going to blow this deal,' he added, calling it 'as good as done.' The deal put forward to the Committee on Foreign Investment in the US, or Cfius, a secretive panel which reviewed the proposed takeover, included the original $55-per-share acquisition along with extra investment, according to people familiar with the matter. As part of the agreement, the US will retain certain powers, including over board membership, according to people familiar. US Senator David McCormick, a Pennsylvania Republican, has cast that arrangement as a 'golden share,' thought it is not clear if it would amount to an equity stake or just give the government some form of power to intervene. McCormick told CNBC in an interview that the structure will be 'a US CEO, a US majority board, and then there'll be a golden share, which will essentially require US government approval of a number of the board members, and that'll allow the United States to ensure production levels aren't cut and things like that.' Both Trump and his predecessor, Joe Biden, opposed the sale during the 2024 presidential election, saying US Steel should remain in American hands. Biden killed the deal citing national security concerns just before Trump took office. Trump then ordered a review of that decision before announcing the partnership last week. Advocates for a deal between Nippon Steel and US Steel have long argued that the Japanese company would help revitalize the American firm with investments. The next steps to consummate the deal are not entirely clear. Both sides need to finalize their agreement through the Cfius review process. It's not clear whether the text of any mitigation agreement — which is likely to spell out what powers the US government retains — is finalised.
Yahoo
5 days ago
- Business
- Yahoo
Takeaways From Trump's Visit to a United States Steel Corp. Plant
Trump was visiting the United States Steel Corp. plant to champion an expected deal between US Steel and Japan's Nippon Steel Corp. as one that would ensure the iconic American firm remains US-owned and operated, and he would be increasing tariffs on steel to 50% from 25%. Bloomberg's Josh Wingrove has more on the story.
Straits Times
5 days ago
- Business
- Straits Times
Trump to double steel tariffs to 50% to aid Nippon-US Steel
US President Donald Trump said that US Steel's blast furnaces will remain at 'full capacity' for at least 10 years. PHOTO: KENNY HOLSTON/NYTIMES WASHINGTON - US President Donald Trump said he would be increasing tariffs on steel to 50 per cent from 25 per cent, saying the move would help protect American steelworkers during a visit to a United States Steel Corp plant on May 30. Mr Trump was visiting the plant to champion an expected deal between US Steel and Japan's Nippon Steel Corp as one that would ensure the iconic American firm remains US-owned and operated, even as many details on the agreement remain vague. He said the tariff increase would benefit the new venture's US operations. 'I believe that this group of people that just made this investments right now are very happy, because that means that nobody's going to be able to steal your industry,' Mr Trump said. 'It's at 25 per cent, they can sort of get over that fence, at 50 per cent they can no longer get over the fence.' Mr Trump's rate hike, which the White House said would go into effect next week, caps a tumultuous stretch that saw a trade court rule his sweeping 'reciprocal' tariff regime illegal, only for an appeals court to offer a stay keeping the levies temporarily in place. Earlier on May 30, Mr Trump also registered his frustration with China - who he accused of reneging on a tariff truce negotiated earlier in May - raising the prospect of additional import taxes. The new 50 per cent level also offers a backstop for Mr Trump's promise that the US Steel-Nippon deal, which he opposed on the campaign trail, would benefit steelworkers in the critical battleground state of Pennsylvania. The deal was opposed by the United Steelworkers, who worried Japanese ownership could see capacity reduced and jobs shifted to other plants. 'There's a lot of money coming your way,' Mr Trump added, as he spoke in front of signs reading 'The Golden Age' - a reference to the economic boom he says his policies will unleash - as well as 'American Steel' and 'American Jobs'. Shares of other US steel companies including Nucor Corp, Cleveland-Cliffs Inc and Steel Dynamics Inc rallied in after-hours trading. Cleveland-Cliffs shares jumped more than 15 per cent, while Steel Dynamics and Nucor are up at least 5 per cent. Mr Trump said US Steel workers would receive a US$5,000 (S$6,450) bonus soon and that US$2.2 billion of the US$14 billion proposed investment would be earmarked to increase steel production at the Mon Valley Works plant where he was speaking. Mr Trump said US$7 billion would be spent to modernize steel mills, expand ore mining and build new facilities in Indiana, Minnesota, Alabama and Arkansas. He also said US Steel won't announce layoffs or outsourcing and that its blast furnaces will remain at 'full capacity' for at least 10 years. The US imports about 17 per cent of its steel needs, according to figures from Morgan Stanley, with the majority coming from Canada, Brazil and Mexico. Construction companies have warned levies are likely to increase the cost of critical building materials, reducing the supply and increasing the cost of new housing. The event had the tone of a victory lap, with Mr Trump receiving a Pittsburgh Steelers jersey and a golden hard hat during his visit, but despite the celebratory tone, critical details on the deal were unclear ahead of the May 31 event. Investors are eager for any insight into the agreement a week after he first announced that he would approve the deal. Mr Trump's decision marked a stunning reversal on a transaction that he had fiercely opposed on the campaign trail, but the president cast the shift as coming with concessions from Nippon Steel that benefitted steelworkers. 'Every time they came in, the deal got better and better and better for the workers,' Mr Trump said, stressing that US Steel would remain headquartered in Pittsburgh. The president last week cast it as a 'planned partnership' bringing investments to the US – not as an outright sale of an American company. Even after Trump's announcement last week, work continued on the terms, including what veto powers the US government will retain over the board of the US Steel subsidiary. 'In Washington, I'm going to be watching over it, and it's going to be great,' Mr Trump said. The May 31 event offers to cap what has been a politically contentious and tumultuous path for Nippon Steel's bid to purchase an iconic American firm – a lengthy saga that left both companies in limbo. Nippon Steel initially proposed a US$14.1 billion transaction for US Steel. 'The commitments have been made,' Representative Dan Meuser, a Pennsylvania Republican, said in an interview at the Irvin Works site ahead of Trump's remarks. 'They're not going to blow this deal,' he added, calling it 'as good as done.' The deal put forward to the Committee on Foreign Investment in the US, or Cfius, a secretive panel which reviewed the proposed takeover, included the original US$55-per-share acquisition along with extra investment, according to people familiar with the matter. As part of the agreement, the US will retain certain powers, including over board membership, according to people familiar. US Senator David McCormick, a Pennsylvania Republican, has cast that arrangement as a 'golden share,' thought it is not clear if it would amount to an equity stake or just give the government some form of power to intervene. Mr McCormick told CNBC in an interview that the structure will be 'a US CEO, a US majority board, and then there'll be a golden share, which will essentially require US government approval of a number of the board members, and that'll allow the United States to ensure production levels aren't cut and things like that.' Both Mr Trump and his predecessor, Joe Biden, opposed the sale during the 2024 presidential election, saying US Steel should remain in American hands. Mr Biden killed the deal citing national security concerns just before Mr Trump took office. Mr Trump then ordered a review of that decision before announcing the partnership last week. Advocates for a deal between Nippon Steel and US Steel have long argued that the Japanese company would help revitalize the American firm with investments. The next steps to consummate the deal are not entirely clear. Both sides need to finalise their agreement through the Cfius review process. It's not clear whether the text of any mitigation agreement – which is likely to spell out what powers the US government retains – is finalised. BLOOMBERG Join ST's Telegram channel and get the latest breaking news delivered to you.
