President Donald Trump announced a doubling of steel tariffs to 50%, a significant increase with potential implications for prices of goods using the metal, such as housing and vehicles.
Trump made the announcement at US Steel’s Mon Valley Works–Irvin Plant in West Mifflin, Pennsylvania, while discussing investments from Japan’s Nippon Steel.
According to the government’s producer price index, steel product prices have risen roughly 16% during Trump’s presidency.
Trump stated that US Steel will remain an American company under an agreement with Japan-based Nippon for investment. Specifics of the deal remain limited.
“We’re here today to celebrate a blockbuster agreement that will ensure this storied American company stays an American company,” Trump said at the event held in a US Steel warehouse near Pittsburgh.
“You’re going to stay an American company, you know that, right?”
Trump claimed the increased steel tariffs will “even further secure the steel industry in the US,” but acknowledged the potential for rising prices.
Employees, Trump supporters, local officials, and others attended the event in a large warehouse at the Irvin finishing plant.
The warehouse was decorated with large American flags and a sign reading “The Golden Age”.
Steelworkers in hard hats and work clothes were present, with the floor displaying coils of steel sheet used for appliances, doors, and other applications.
Although Trump had initially opposed the Nippon Steel acquisition of US Steel, he recently announced an agreement for what he called “partial ownership” by the Japanese company.
The finalized deal details and ownership structure remain unclear.
Trump emphasized that the agreement would ensure American control of the company, citing its political importance, supply chain significance, and relevance to industries like car manufacturing and national security.
Eager to announce new US investments after retaking office, Trump is aiming to appeal to voters, especially blue-collar workers who supported his promises to protect US manufacturing.
Neither US Steel nor Nippon Steel have publicly communicated specific details of the updated deal to investors. Nippon Steel released a statement supporting the proposed “partnership” but has not disclosed terms.
