Trump to Double Steel Tariffs to 50% Starting June 4 Amid Trade Tensions
US President Donald Trump announced on Friday that the tariffs on imported steel will be doubled from the current 25% to 50%, effective June 4. The move aims to further protect American steel producers and bolster domestic manufacturing, despite concerns from industries like housing, automotive, and construction about rising costs.
Speaking at US Steel’s Mon Valley Works plant in Pennsylvania, Trump emphasized the need to support the US steel industry, which he sees as vital to the nation’s strength and pride. “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,” Trump said, according to Reuters.
Trump also criticized China, accusing it of reneging on a deal to ease tariffs and trade restrictions on critical minerals. “America’s future should be constructed with the strength and the pride of Pittsburgh, rather than relying on shoddy steel from Shanghai,” he added, signaling his continued tough stance on trade with China.
Impact on Industries and Trade War Escalation
The proposed tariff increase marks an escalation in Trump’s global trade war, first initiated in 2018. At that time, the US imposed 25% tariffs on most imported steel and aluminum products, which led to a nearly 16% rise in steel prices according to government data. Industries heavily dependent on steel, such as housing, automotive manufacturing, and construction, are expected to face increased costs due to the higher tariffs.
The steel tariffs were among Trump’s first trade measures after taking office, signaling his administration’s priority on protecting American manufacturing. Although Trump once threatened a 50% tariff on Canadian steel imports, he eventually backed down from that plan. Now, with the announced doubling of steel tariffs, the trade tensions appear to be intensifying again.
US Steel and Nippon Steel Deal
Coinciding with the tariff announcement, Trump hailed a proposed investment deal involving Japan-based Nippon Steel and US Steel. The deal aims to keep US Steel under American control while attracting significant investment. Speaking at an event near Pittsburgh, Trump said, “We’re here today to celebrate a blockbuster agreement that will ensure this storied American company stays an American company.”
While details remain scarce, state and federal lawmakers briefed on the deal suggest Nippon Steel would acquire US Steel and invest billions in its US operations across several states including Pennsylvania, Indiana, Alabama, Arkansas, and Minnesota. The arrangement reportedly includes a leadership team and board dominated by Americans, along with a “golden share” — a special US government veto power to protect national interests.
Union Skepticism and Lack of Transparency
Despite the fanfare, US Steel and Nippon Steel have yet to release full details of the agreement. The United Steelworkers union, a long-standing critic of foreign acquisitions, expressed skepticism about whether the deal truly represents a shift from Nippon Steel’s earlier plans. The union noted that Nippon had consistently stated it would only invest in US Steel if it had full ownership, and there is no indication this position has changed.
The union’s concerns highlight the uncertainty surrounding the deal’s real impact on American workers and the steel industry. For now, the doubling of steel tariffs signals a continued tough trade policy approach by the Trump administration — one that aims to protect US manufacturing but risks escalating costs and tensions in the global market.
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