WASHINGTON D.C., United States — Former President Donald Trump has declared that the United States will double its existing tariff on steel and aluminum imports, increasing it from 25% to 50%, effective Wednesday.
Speaking at a rally in Pittsburgh, Pennsylvania, on Friday, Trump asserted that this measure aims to bolster the domestic steel industry, enhance national supply, and reduce reliance on China.
Trump also mentioned a proposed $14 billion investment in the region’s steel production through a partnership between US Steel and Japan’s Nippon Steel, although he later clarified to reporters that he had not yet seen or approved the final agreement.
This announcement represents the latest development in Trump’s fluctuating tariff policies since his return to office in January.
“There will be no layoffs and no outsourcing whatsoever, and every US steelworker will soon receive a well deserved $5,000 bonus,” Trump told the audience, largely comprised of steelworkers, who responded with enthusiastic applause.
A significant concern among steelworkers regarding the US-Japan trade deal pertains to how Japan would honor the workers’ union contract, which governs pay and employment.
Trump began his address by claiming that he had “saved” US Steel, America’s largest steel manufacturer based in Pittsburgh, with the 25% tariffs he implemented during his initial presidential term in 2018. However, US Steel’s sales and profits have been declining in recent years.
Trump touted the 50% tariff increase as a means to ensure US Steel’s viability.
“At 50%, they can no longer get over the fence,” he stated. “We are once again going to put Pennsylvania steel into the backbone of America, like never before.”
US steel manufacturing has experienced a decline in recent years, with China, India, and Japan emerging as the world’s leading producers. Approximately a quarter of the steel used in the US is imported, and Trump has expressed dissatisfaction with the country’s dependence on Mexican and Canadian steel.
The announcement coincides with an ongoing legal battle concerning the legality of some of Trump’s global tariffs, which an appeals court has permitted to proceed after the Court of International Trade instructed the administration to halt the taxes. His steel and aluminum tariffs were not affected by the lawsuit.
“It is a good day for steelworkers,” said JoJo Burgess, a member of the local United Steelworkers union and the mayor of Washington, Pennsylvania, who attended Trump’s rally.
Burgess expressed optimism regarding the reported details of the partnership with Nippon Steel, hoping it would foster a new generation of steelworkers in the area. He recalled “making a lot of money” following the implementation of Trump’s steel tariffs during his first term.
While Burgess does not identify as a Trump supporter and has exclusively voted for Democratic presidential nominees in the past two decades, he stated, “I’m never going to disagree with something that’s going to level the playing field for American manufacturing.”
However, Trump’s tariffs have largely resulted in global economic disruption. International trade and markets have been destabilized, and tensions have intensified between the US and other nations, including close allies.
The tariffs have strained relations between the US and China, the world’s two largest economies, leading to a tit-for-tat trade dispute. On Friday, Trump accused China of violating a tariff truce reached earlier in the month during talks in Geneva, without providing specifics.
US Trade Representative Jamieson Greer later clarified that China had not adhered to the agreement to remove non-tariff barriers.
China responded with counter-accusations of US misconduct. Beijing’s response did not directly address the US claims but urged the US to “cease discriminatory restrictions against China.”
China is the world’s largest steel producer, accounting for over half of global steel production, according to 2022 World Steel Association statistics.
“If you don’t have steel, you don’t have a country. You don’t have a country, you can’t make a military. What are we going to do? Say, ‘Let’s go to China to get our steel from the army tanks,'” Trump quipped at the Pittsburgh rally.
Trump’s hour-long speech briefly mentioned the reported deal with Nippon Steel but did not provide any new details. Neither company has confirmed the completion of any agreement.
US Steel had agreed to be acquired by Nippon in a $15 billion deal in December 2023, which was later blocked by President Joe Biden on national security grounds.
During his presidential campaign, Trump had expressed strong opposition to US Steel’s acquisition by a “foreign company,” stating he would “block it instantaneously” and describing the takeover as “so terrible.”
Under the reported new “partnership,” the ownership and operational control of the 124-year-old American business remain unclear.
White House officials stated that Trump had persuaded Nippon to increase its investment in the US and grant the government significant influence over the operations of US factories.
According to US media reports, Japan plans to invest $14 billion over 14 months.
Other reported details include commitments to maintain US ownership of US Steel, with US citizens on the board and in leadership positions; pledges not to reduce production for 10 years; and agreements to grant the government veto power over potential production cuts after that period.
