Trump Announces Doubling of Steel Tariffs to 50% Starting June 4, Escalates Trade War
US President Donald Trump on Friday announced plans to double tariffs on foreign steel imports from 25% to 50%, with the new rate taking effect on June 4. The move significantly escalates Trump’s global trade war and comes hours after he accused China of breaking a deal on critical minerals trade restrictions.
Speaking at US Steel’s Mon Valley Works–Irvin Plant in Pennsylvania, Trump said the tariff hike would protect domestic steel producers and strengthen American manufacturing capabilities.
“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, which will even further secure the steel industry in the United States,” Trump stated, according to Reuters.
Taking direct aim at China, Trump declared that America’s future should be built with “the strength and the pride of Pittsburgh” rather than relying on “shoddy steel from Shanghai.”
The announcement represents a significant escalation in trade tensions, particularly with China, as Trump continues his protectionist trade policies.
The proposed tariff increase could substantially raise costs for industries heavily dependent on steel, including housing, automotive, and construction sectors. These industries may face increased production costs that could be passed on to consumers.
Government data shows that since Trump first imposed steel tariffs in 2018, prices for steel products have already risen nearly 16%. The additional tariff increase is expected to further inflate steel costs across the American economy.
The steel tariffs, along with aluminum levies, were among Trump’s first trade actions upon returning to office in January. A 25% tariff on most imported steel and aluminum took effect in March.
Trump had previously threatened to impose a 50% levy on Canadian steel but later retreated from that position, demonstrating the selective nature of his tariff strategy.
During the same Pennsylvania event, Trump announced that US Steel would remain an American company under a proposed investment deal involving Japan-based Nippon Steel.
“We’re here today to celebrate a blockbuster agreement that will ensure this storied American company stays an American company,” Trump declared at the US Steel warehouse near Pittsburgh.
However, concrete details of the arrangement remain scarce, with neither US Steel nor Nippon Steel releasing specific terms to investors.
According to state and federal lawmakers briefed on the agreement, Nippon would acquire US Steel and invest billions in operations across Pennsylvania, Indiana, Alabama, Arkansas, and Minnesota.
The reported structure includes an American-dominated leadership team and board, plus a special US government veto authority known as a “golden share” to ensure American control over strategic decisions.
The United Steelworkers union, a consistent critic of the acquisition, expressed skepticism about the reported changes to the original deal structure.
“Nippon has maintained consistently that it would only invest in U.S. Steel’s facilities if it owned the company outright,” the union stated. “We’ve seen nothing in the reporting over the past few days suggesting that Nippon has walked back from this position.”
The union’s concerns highlight ongoing labor opposition to foreign ownership of American steel assets, even with proposed safeguards.
The tariff announcement intensifies Trump’s broader trade confrontation with global partners, particularly China. Earlier Friday, Trump accused China of breaking agreements on mutual tariff reductions and trade restrictions on critical minerals.
This escalation follows a pattern of Trump using tariffs as both economic and diplomatic weapons to pressure trading partners into more favorable agreements for American interests.
