Trump tells US steelworkers he's going to double tariffs on aluminum and steel imports to 50%

ITV News

a day ago

President Donald Trump says he's doubling the tariff rate on aluminum and steel to 50% from Wednesday, a dramatic increase that could further push up prices for metal used to make housing, autos and other goods.
Trump made the announcement on Friday at U.S. Steel's Mon Valley Works–Irvin Plant in West Mifflin, Pennsylvania, where he announced a $14 billion investment through a partnership with Japan's Nippon Steel.
In a fresh escalation of his global trade war, he told the rally the move would ensure US Steel's survival and reduce the reliance on China, the world's largest steel manufacturer.
The price of steel products has increased roughly 16% since Trump became president in January, according to the government's producer price index.
Trump told reporters after he arrived back in Washington that he still has to approve the deal.
'I have to approve the final deal with Nippon and we haven't seen that final deal yet, but they've made a very big commitment and it's a very big investment,' he said.
Though Trump initially vowed to block the Japanese steelmaker's bid to buy the Pittsburgh-based U.S. Steel, he reversed course and announced an agreement last week for 'partial ownership' by Nippon.
However, it's unclear if the deal his administration helped broker has been finalised or how ownership would be structured. Nippon Steel has never said it is backing off its bid to outright buy and control U.S. Steel as a wholly owned subsidiary, even as it increased the amount of money it promised to invest in U.S. Steel plants and gave guarantees that it wouldn't lay off workers or close plants.
'We're here today to celebrate a blockbuster agreement that will ensure this storied American company stays an American company,' Trump said as he opened an event at one of U.S. Steel's warehouses. 'You're going to stay an American company, you know that, right?'
As for the tariffs, Trump said doubling the levies on imported steel 'will even further secure the steel industry in the U.S.' But such a dramatic increase could push prices even higher.
Steel prices have climbed 16% since Trump became president in mid-January, according to the government's Producer Price Index.
As of March 2025, steel cost $984 a metric ton in the United States, significantly more than the price in Europe ($690) or China ($392), according to the U.S. Commerce Department. The United States produced about three times as much steel as it imported last year, with Canada, Brazil, Mexico and South Korea being the largest sources of steel imports.
Analysts have credited tariffs going back to Trump's first term with helping strengthen the domestic steel industry, something that Nippon Steel wanted to capitalise on in its offer to buy U.S. Steel.
However, the United Steelworkers union remain skeptical.
Its president, David McCall, said in a statement that the union is most concerned '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.'
Trump stressed the deal would maintain American control of the storied company, which is seen as both a political symbol and an important matter for the country's supply chain, industries like auto manufacturing and national security.
Trump, who has been eager to strike deals and announce new investments in the U.S. since retaking the White House, is also trying to satisfy voters, including blue-collar workers, who elected him as he called to protect U.S. manufacturing.
U.S. Steel has not publicly communicated any details of a revamped deal to investors. Nippon Steel issued a statement approving of the proposed 'partnership' but also has not disclosed terms.