Trump to Double Steel Tariffs to 50% from June 4, Supports Nippon-US Steel Deal

In a dramatic move to bolster domestic steel manufacturing and reignite nationalist economic policy, President Donald Trump announced a doubling of U.S. tariffs on imported steel, raising duties from 25% to 50% effective June 4, 2025. The declaration, made at a campaign-style rally in Pennsylvania, was framed as a critical safeguard for American industrial jobs, and comes amid escalating tensions with China over critical mineral trade and foreign investments in strategic U.S. assets.

Tariff Hike Aimed at Fortifying Domestic Steel Industry

Trump stated that the steel tariff increase is meant to further strengthen America’s industrial base and shield it from foreign competition, particularly from China. “We are going to be imposing a 25% increase. We’re going to bring it from 25% to 50% — the tariffs on steel into the United States of America,” he declared, emphasizing that the move will help “secure the steel industry in the United States.”

In a pointed reference to Chinese exports, Trump said America’s future must be built with the “strength and pride of Pittsburgh,” and not with “shoddy steel from Shanghai.” His remarks underscore a return to the aggressive trade stance that defined his earlier presidency, particularly with respect to U.S.–China trade frictions.

Highlights:

• Steel tariffs to rise from 25% to 50% starting June 4, 2025.

• Trump frames move as vital to defending U.S. industrial capacity.

• China called out for violating mineral trade agreement with U.S.

Nippon–U.S. Steel Deal Cast as Strategic “Partnership”

Trump’s tariff announcement came during an event showcasing the controversial $14.9 billion acquisition of U.S. Steel by Japan’s Nippon Steel, which Trump called a “partnership” designed to preserve American jobs and industrial sovereignty. Standing beside executives from both companies, including U.S. Steel CEO David Burritt and Nippon Steel Vice Chairman Takahiro Mori, Trump emphasized that the agreement ensures “U.S. Steel will remain under American ownership.”

Although the proposed deal has drawn political criticism for involving a foreign buyer, Trump asserted that Nippon Steel’s operational approach qualifies it as a “partial owner,” not a controlling foreign entity. The company has pledged to keep U.S. Steel’s headquarters in Pittsburgh and maintain its current workforce of 14,000 in North America.

Highlights:

• Trump endorses Nippon Steel’s $14.9 billion acquisition as a “partnership.”

• U.S. Steel to retain name, HQ in Pittsburgh, and all current jobs.

• Trump stresses the deal as preserving domestic control and employment.

Billions in Investment and Bonuses Pledged for U.S. Steel Workers

As part of the agreement, Nippon Steel committed to a $2.2 billion investment in the Mon Valley Works near Pittsburgh, with an additional $7 billion planned for modernizing facilities in Indiana, Alabama, Arkansas, and Minnesota. Trump hailed the combined $9.2 billion investment as the largest in U.S. steel industry history, and emphasized that blast furnaces will remain operational for at least 10 years.

The deal also includes a $5,000 bonus for each U.S. Steel worker, a move designed to bolster support among union workers and reinforce the pro-labor image Trump is cultivating during his campaign appearances in Rust Belt states.

Highlights:

• $2.2 billion to be invested in Mon Valley Works near Pittsburgh.

• Additional $7 billion earmarked for plants in four states.

• All U.S. Steel workers to receive $5,000 bonus.

Deal Terms Still Pending Shareholder Finalization

Despite the celebratory event and public endorsements, U.S. Steel shareholders have not yet been notified of any modifications to the original $14.1 billion offer, which translates to $55 per share. The offer is currently set to expire on June 18, 2025. The event, however, suggests that Trump’s backing may influence political scrutiny of the deal, particularly from lawmakers previously opposed to foreign acquisitions in strategic industries.

Mori praised Trump’s support during the event, pledging to “earn that trust” through sustained investment and partnership. Burritt reaffirmed U.S. Steel’s American identity, crediting the president with safeguarding the company’s legacy. Their statements were widely seen as a calculated public alignment with Trump’s industrial agenda.

Highlights:

• $14.1 billion offer still pending shareholder decision by June 18.

• Shareholder approval required for finalization of the Nippon Steel deal.

• Trump seen as instrumental in helping the deal gain regulatory favor.

Steel Tariffs May Reignite Global Trade Tensions

The tariff hike comes at a delicate time in global trade relations, particularly with Trump accusing China of violating a recent agreement on reducing tariffs and export restrictions for critical minerals. The decision is likely to aggravate U.S.–China trade frictions and could provoke retaliatory measures from allies and rivals alike.

While Trump has historically leveraged tariffs as a negotiating tool, the sharp increase in steel duties to 50% raises the stakes dramatically, potentially impacting global steel prices, supply chains, and international trade flows.

Highlights:

• China targeted for breaching a trade deal on minerals.

• 50% steel tariff likely to increase global trade friction.

• Retaliatory responses expected from trading partners.