At a rally in West Mifflin, Pennsylvania, President Donald Trump announced that he will double tariffs on imported steel and aluminum from 25 percent to 50 percent. The decision comes as part of a larger effort to strengthen the domestic steel industry and protect American jobs. Speaking to a crowd of hundreds of steelworkers and supporters at U.S. Steel’s Irvin Works, Trump said the increase will “even further secure the steel industry in the United States.”
“Nobody’s going to get around that,” Trump declared. “Nobody’s gonna be able to steal your industry. At 25 percent, they can sort of get over that fence. At 50 percent they can no longer get over the fence.”
The move is set to take effect on June 4. The president said the higher tariffs are necessary to protect the $14 billion partnership between U.S. Steel and Japan’s Nippon Steel, which he described as “the single-largest investment of any kind in any industry.”
Details of the Historic Nippon Steel Deal
Trump’s rally also served as the stage for announcing the partnership between U.S. Steel and Nippon Steel, a deal he said would create or save over 100,000 American jobs. “You’re going to be very happy,” Trump told the crowd. “There’s a lot of money coming your way.” He also promised that every steelworker would receive a $5,000 bonus as part of the deal.
The $14 billion investment includes $2.2 billion to upgrade the Mon Valley Works near Pittsburgh and $7 billion to modernize equipment and expand production in states like Indiana, Alabama, Arkansas and Minnesota. Nippon Steel Vice Chairman Takahiro Mori said during the rally, “We will make the investments to transform U.S. Steel on the world stage. Let’s get together, stronger, to be the best steel company in America, and the world.”
The partnership also promises to keep U.S. Steel’s headquarters in Pittsburgh and ensure that it remains under American control. According to Senator David McCormick, “There’ll be a golden share, which will essentially require U.S. government approval of a number of the board members and that will allow the United States to ensure production levels aren’t cut.” McCormick added that the majority of the board members would be Americans.
Why Biden Blocked the Merger
Former President Joe Biden had previously blocked the sale of U.S. Steel to Nippon Steel in January. Biden cited national security concerns as the reason for stopping the deal. “It is my solemn responsibility as president to ensure that, now and long into the future, America has a strong domestically owned and operated steel industry that can continue to power our national sources of strength at home and abroad,” Biden said in his statement. He added that blocking the foreign ownership of U.S. Steel was essential for fulfilling that responsibility.
Trump’s decision to reverse Biden’s action has reignited debate over foreign investment in critical American industries. The president explained that under his administration, the deal would be structured as a partnership rather than a full takeover. “It’s an investment, a partial ownership, but it will be controlled by the USA,” Trump said on social media.
Supporters Applaud the Deal
Supporters of the partnership and the tariff hike say it will provide a much-needed boost to American steel production and ensure jobs for generations of workers. “It’s excellent,” said Matt Albens, a U.S. Steel employee at the rally. “We need it.” Nicole Wright, a shift manager at U.S. Steel’s Clairton Plant, told the crowd, “We know the value of a career at U.S. Steel. Investment is needed here, and that’s what this partnership does.”
Local leaders also praised the deal as a victory for American workers and communities. “You being here today is a huge lift for the country,” said Rep. Mike Kelly of Pennsylvania. “Today, we are all U.S. Steel fans,” added Rep. Dan Meuser, also from Pennsylvania.
Some steelworkers said they had been worried about the future of their jobs after U.S. Steel canceled over $1 billion of planned improvements in 2021. Kim Beveridge, a mobile crane operator at U.S. Steel, said those canceled plans felt like a “slap in the face.” He said he welcomes Nippon Steel’s promised investments, even though he has concerns about the lack of details in the deal.
Critics Raise Concerns
Not everyone is convinced that the partnership will be good for American workers. David McCall, president of the United Steelworkers union, expressed concerns about national security and job stability. “Our primary concern remains with the impact that this merger of U.S. Steel into a foreign competitor will have on national security, our members and the communities where we live and work,” McCall said.
Labor Secretary Lori Chavez-DeRemer pushed back against these concerns, telling Newsmax, “This is important for the economy, this is important for America, and this is a historic deal that the president has made with U.S. Steel.”
Nippon Steel has said it would not interfere with U.S. trade policies or replace American steel with cheaper imports from its Asian plants. The company has also said it will appoint a federal monitor to oversee its compliance with the national security agreement.
A Landmark Moment for American Steel
If completed, the deal would create the world’s third-largest steel producer by volume, behind China’s Baowu Steel Group and Luxembourg’s ArcelorMittal. Trump called the partnership a “blockbuster agreement that will ensure this storied American company stays an American company.” He emphasized that the massive investments from Nippon Steel would keep U.S. Steel’s blast furnaces operating for at least another decade.
U.S. Steel Chief Executive David Burritt said during the rally that the deal would not have been possible without Trump’s support. “Because of him, U.S. Steel stays mined, melted and made in America,” Burritt said.
As steelworkers and their families waved signs and the music of “YMCA” played over the loudspeakers, Trump closed his speech by promising to keep the steel industry strong. “We don’t want America’s future to be built with shoddy steel from Shanghai. We want it built with the strength and the pride of Pittsburgh,” he said.
The president has until next week to finalize the deal, which is still undergoing a second review by the Committee on Foreign Investment in the United States. For now, many workers and supporters see the agreement as a promising step for American steel and the communities that have built their lives around it.
FAM Editor: Trump certainly realizes that there will be outrage from Mexico and Canada our biggest steel suppliers, but Trump can deal with that in the course of negotiations. Japan now owns U.S. steel, so they won’t care. That leaves Brazil and South Korea, which are important but have greater trade interests than just steel. This could work out well considering the jobs Trump is saving, and the industrial capacity we are retaining, versus a bankrupt and out of business U.S. Steel.
