Donald Trump plans to double steel, aluminum tariffs to 50%

Trump Says Steel, Aluminum Tariffs Will Double to 50%

US President Donald Trump announced on Friday that tariffs on imported steel will increase from 25% to 50%, effective June 4, intensifying pressure on global steel producers and escalating trade tensions reports Reuters.

"We are going to be imposing a 25% increase. We're going to bring it from 25% to 50% -- the tariffs on steel into the United States of America, which will even further secure the steel industry in the United States," he said at a rally in Pennsylvania as quoted by Reuters.

The tariff hike could further escalate Trump’s global trade tensions, coming just hours after he accused China of breaching a mutual agreement with the U.S. to ease tariffs and trade restrictions on critical minerals the Reuters report cited.

Talking about China, Trump said America’s future should be constructed with “the strength and the pride of Pittsburgh,” rather than relying on “shoddy steel from Shanghai.”

The increase in tariffs was announced in a speech that he gave outside Pittsburgh, Pennsylvania, while he was talking about an agreement between Nippon Steel (5401.T), opens new tab and U.S. Steel (X.N), opens new tab. Trump said the $14.9 billion deal, like the tariff increase, will help keep jobs for steel workers in the U.S.

“There has never been a $14 billion investment in the history of the U.S. steel industry,” Trump stated on Friday evening, addressing several hundred steelworkers. “Most importantly, U.S. Steel will remain under American ownership.”

Trump has described the proposed agreement between Nippon Steel and U.S. Steel as a "partnership." For the past 18 months, Nippon Steel has been working toward acquiring U.S. Steel, recently committing to further investments in its facilities in an effort to gain Trump’s support.

CEO of US Steel David Burritt and Vice Chairman of Nippon Steel Takahiro Mori were present on the stage with Trump, crediting the president with helping make the deal possible.

“You have placed your trust in us, and we will do our part in the years ahead to earn that trust,” Mori said. “Now, we will start to make the massive investments that will transform U.S. Steel.”

“Because of him, U.S. Steel stays mined, melted and made in America,” Burritt said.

Despite recent developments, U.S. Steel shareholders have not been notified of any changes to Nippon Steel’s $14.1 billion offer, indicating that the original agreement may still proceed. The $55-per-share offer is set to expire on June 18.

In North America US Steel has a workforce of 14,000 , it will maintain its headquarters in Pittsburgh and continue operating under the US Steel name. Trump referred to Nippon Steel as a “partial owner.”

Trump also announced that Nippon would invest $2.2 billion in U.S. Steel’s Mon Valley Works near Pittsburgh, along with an additional $7 billion for modernizing equipment and expanding production in Indiana, Alabama, Arkansas, and Minnesota. Under the deal, the company's blast furnaces will remain operational for the next decade, and each worker will receive a $5,000 bonus.

(With agency inputs)