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Trump Doubles Steel and Aluminum Tariffs to 50% to Protect U.S. Industry

U.S. Steel Workers Welcome Trump’s Tariff Hike and New Nippon Steel Deal

by The Daily Desk
May 31, 2025
in Business, Economic Policy & Trade, Global Trades, Government and Politics, Government Policies, Government Reforms & Controversies, International Relations, International Trade, International Trade & Tariffs
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Steel Tariffs Soar as Trump Pushes to Keep U.S. Steel ‘American’ - AP Photo/Julia Demaree Nikihinson

Trump’s 50% Steel Tariff: A Boost for U.S. Industry or Higher Prices? - AP Photo/Julia Demaree Nikihinson

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Trump Announces Doubling of Steel and Aluminum Tariffs to 50% to Protect U.S. Industry

WEST MIFFLIN, Pa. — President Donald Trump made headlines Friday by announcing he will double tariffs on imported steel and aluminum to 50%, a sharp increase aimed at protecting American steelworkers and boosting domestic production. The move, set to take effect next Wednesday, could raise prices for steel—a critical material used in everything from cars to housing.

Speaking at U.S. Steel’s Mon Valley Works plant near Pittsburgh, Trump emphasized the importance of keeping the American steel industry strong. “You’re going to stay an American company, you know that, right?” he told the crowd of steelworkers.

A Deal With Nippon Steel: Keeping U.S. Steel American?

Trump also addressed a developing deal involving Japanese steel giant Nippon Steel, which plans to invest heavily in U.S. Steel. Initially, Trump had threatened to block Nippon’s bid to buy Pittsburgh-based U.S. Steel outright. But last week, he surprised many by announcing an agreement that would allow “partial ownership” by Nippon while keeping the company American in spirit and control.

“I still have to approve the final deal,” Trump told reporters after returning to Washington. “We haven’t seen that final deal yet, but they’ve made a very big commitment and it’s a very big investment.”

Details remain murky. Nippon Steel has never publicly backed down from its original plan to buy U.S. Steel fully, but in recent negotiations, it pledged billions in investments and promised not to lay off workers or close plants—a key concern for union members and local communities.

Union Concerns and Worker Perspectives

The United Steelworkers union remains cautious. Its president, David McCall, voiced worries about national security and the impact on steelworkers’ jobs if a foreign competitor gains control of the company.

Still, on the ground, opinions among steelworkers are mixed but leaning toward cautious optimism. Clifford Hammonds, who works at the plant where Trump spoke, said the promised investment is badly needed. “This plant is old, it’s falling apart,” Hammonds said. “We need money to fix machines and increase production.”

Tariffs and Market Impact

Steel prices in the U.S. have already climbed about 16% since Trump’s presidency began, according to government data. The current cost—around $984 per metric ton—is notably higher than prices in Europe or China.

Trump believes that raising tariffs further will “secure the steel industry in the U.S.” and help American workers compete with foreign producers. However, critics warn that higher tariffs could drive up costs for manufacturers and consumers.

The Bigger Picture: Manufacturing, Politics, and the Future

Trump’s focus on U.S. Steel fits into his broader agenda to revive American manufacturing and energize blue-collar voters who helped deliver his return to the White House. The fate of this iconic company has political implications, especially in Pennsylvania—a key swing state with a deep industrial history.

State and federal officials say the proposed Nippon Steel deal includes plans to invest billions into steel plants across several states, with governance largely in American hands and protected by a “golden share” veto held by the U.S. government.

Jason Zugai, a vice president of the local steelworkers union, praised the deal onstage with Trump. Having seen the industry decline over decades, Zugai called Nippon’s $14 billion investment “life-changing” and expressed confidence that Trump would protect workers’ interests.

Trump’s Closing Message to Steelworkers

Ending his remarks, Trump thanked the steelworkers and laid out a vision of American self-reliance and strength:

“With the help of patriots like you, we’re going to produce our own metal, unleash our own energy, secure our own future, build our country, control our destiny,” he said. “We are once again going to put Pennsylvania steel into the backbone of America like never before.”

Source: AP News – Trump tells US steelworkers he’s going to double tariffs on foreign steel to 50%

The Daily Desk

The Daily Desk

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