According to President Donald Trump’s post on Truth Social, he announced that tariffs on steel imports will double to 50%, a move aimed at strengthening the domestic steel industry, effective June 4.
Speaking at U.S. Steel’s Irvin Works facility in West Mifflin, Pennsylvania, Trump said the tariff hike from 25% is intended to secure U.S. steel production by creating a higher barrier against foreign competition.
The announcement follows Trump’s decision to approve a revised deal for Japanese steelmaker Nippon Steel to acquire U.S. Steel. Although the transaction has been widely described as a merger, Trump referred to it as a “partnership” and emphasized that the company would remain under U.S. control.
Under the new structure, U.S. Steel’s headquarters will remain in Pittsburgh, and Nippon will invest $14 billion over a 14-month period. The company has also committed to running blast furnaces at full capacity for at least ten years, maintaining current jobs, and avoiding outsourcing. U.S. Steel workers are expected to receive a $5,000 bonus as part of the agreement.
The deal, originally valued at $55 per share, had been blocked in January by former President Joe Biden over national security concerns. However, Trump revived the transaction in April by ordering a new review through the Committee on Foreign Investment in the United States (CFIUS), which concluded last week.
To address national security risks, the agreement includes a “golden share” provision granting the U.S. government veto power over board appointments. The company will be led by an American CEO, and the majority of its board members will be based in the U.S.
Despite the revisions, skepticism remains among labor leaders. The United Steelworkers union, which initially opposed the deal, said it cannot evaluate the new terms without further details. The union remains concerned about the long-term impact of foreign ownership on U.S. jobs and steelmaking capacity.
