Trump announces 50% steel tariffs and hails ‘blockbuster' deal with Japan

Yahoo

2 days ago

Donald Trump announced on Friday he was doubling foreign tariffs on steel imports to 50%, as the president celebrated a 'blockbuster' agreement for Japan-based Nippon Steel to invest in US Steel during a rally in Pennsylvania.
Surrounded by men in orange hardhats at a US Steel plant in West Mifflin, Trump unveiled the new levies, declaring that the dramatic rate increase would 'even further secure the steel industry in the United States'.
'Nobody is going to get around that,' Trump said of the tariff rate hike from what was 25%.
In a social media post after the conclusion of his remarks, Trump announced that the 50% tariffs on steel would also apply to imported aluminum and would take effect on 4 June.
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'This will be yet another BIG jolt of great news for our wonderful steel and aluminum workers,' he declared in the post.
It was not immediately clear how the announcement would affect the trade deal negotiated earlier this month that saw tariffs on UK steel and aluminum reduced to zero.
Trump's Friday announcement came a day after a federal appeals court temporarily allowed his tariffs to remain in effect, staying a decision by a US trade court that blocked the president from imposing the duties.
The trade court ruling, however, does not impede the president's ability to unilaterally raise tariffs on steel imports, an authority granted under a national security provision called section 232 of the Trade Expansion Act.
The precise relationship between Nippon Steel and US Steel raised questions on Friday, even for some of Trump's allies. The president has thrown his full support behind the deal, months after insisting he was 'totally against' a $14.9bn bid by Nippon Steel for its US rival.
The United Steelworkers union had previously urged Trump to reject Nippon's bid, dismissing the Japanese firm's commitments to invest in the US as 'flashy promises' and claiming it was 'simply seeking to undercut our domestic industry from the inside'.
Speaking to steelworkers, Trump insisted that US Steel would 'stay an American company' after what he is now calling 'a partnership' with Nippon.
But US Steel's website links to a standalone site with the combined branding of the two companies that features a statement describing the transaction as 'US Steel's agreement to be acquired by NSC'.
On the website touting the deal, there were also multiple references to 'Nippon Steel's acquisition of US Steel' and the 'potential sale of US Steel to Nippon Steel'.
Even pro-Trump commentators on Fox expressed bafflement over the exact nature of the deal.
'This is being described as 'a partnership', this deal between Nippon and US Steel – but then it's described as an acquisition on the US Steel website,' Fox host Laura Ingraham pointed out on her Friday-night show.
She asked a guest from another pro-Trump outlet, Breitbart: 'Who owns the majority stake in this company?'
When the guest said he did not know, Ingraham suggested Trump might not be aware of the details. 'I don't know if he was fully informed about the terms of the deal. We just don't know.'
Trump's predecessor, Joe Biden, had blocked Nippon's acquisition, citing national security concerns, during his final weeks in office.
During his remarks at the rally, Trump gloated that the Nippon investment would once again make the American steelmaker 'synonymous with greatness'. He said protections were included to 'ensure that all steel workers will keep their jobs and all facilities in the United States will remain open and thriving' and said Nippon had committed to maintaining all of US Steel's currently operating blast furnaces for the next decade.
The president also promised that every US steel worker would soon receive a $5,000 bonus – prompting the crowd to start a round of 'U-S-A!' chants.
Trump told the steelworkers in attendance that there was 'a lot of money coming your way'.
'We won't be able to call this section a rust belt any more,' Trump said. 'It'll be a golden belt.'
During the event, Trump invited local members of United Steelworkers on to the stage to promote the Nippon deal, which saw its leader break with the union to support it. Praising the president, Jason Zugai, vice-president of Irvin local 2227, said he believed the investments would be 'life-changing'.
But the powerful United Steelworkers union remained wary.
'Our primary concern remains with the impact that this merger of US Steel into a foreign competitor will have on national security, our members and the communities where we live and work,' the United Steelworkers president, David McCall, said in a statement.
'Issuing press releases and making political speeches is easy. Binding commitments are hard.'
Trump framed the administration's drive to boost domestic steel production as 'not just a matter of dignity or prosperity or pride' but as 'above all, a matter of national security'.
He blamed 'decades of Washington betrayals and incompetence and stupidity and corruption' for hollowing out the once-dominant American steel industry, as the jobs 'melted away, just like butter'.
'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.
In his remarks at a US steel plant, Trump also repeated many of the false claims that have become a feature of his rallies including the lie that the 2020 election was stolen from him. He gloated over his 2024 victory and, gesturing toward his ear that was grazed by a would-be assassin's bullet last year at a rally in Butler, Pennsylvania, said it was proof that a higher power was watching over him.
He also called on congressional Republicans to align behind his 'one big, beautiful bill', urging attendees to lobby their representatives and senators to support the measure.
Lois Beckett and Callum Jones contributed reporting