PENNSYLVANIA, U.S. – President Donald Trump has announced a dramatic increase in tariffs on steel and aluminium imports, doubling the current 25% rate to 50%, in a move he says will “restore the backbone of American industry” and reduce reliance on foreign producers—especially China.
The new tariffs, set to take effect Wednesday, mark a return to Trump’s hardline trade policy playbook as he campaigns for a second non-consecutive term in the White House.
Speaking at a rally in Pittsburgh, Pennsylvania—home to the country’s largest steelmaker, US Steel—Trump also claimed a $14 billion investment deal is in the works between US Steel and Japan’s Nippon Steel.
“At 50%, they can no longer get over the fence,” Trump told steelworkers. “We are once again going to put Pennsylvania steel into the backbone of America, like never before.”
He promised the new measures would result in no layoffs, no outsourcing, and a one-time $5,000 bonus for steelworkers.
However, he later admitted to reporters that the Nippon-US Steel deal had not yet been finalized or approved.
‘A good day for steelworkers’
JoJo Burgess, a local United Steelworkers union member and the mayor of nearby Washington, Pennsylvania, said he welcomed the proposed investment, even as details remain sparse.
“I’m never going to disagree with something that’s going to level the playing field for American manufacturing,” said Burgess, who noted he’s voted Democrat in every presidential election for the past two decades. “After the 2018 tariffs, I was making a lot of money.”
Union leaders have raised concerns about how the proposed US-Japan partnership would respect worker contracts, particularly those covering wages and hiring practices.
The White House said the agreement would ensure US ownership of facilities, a US-majority board, and a decade-long production guarantee with federal oversight on future cutbacks.
According to US media reports, Japan’s $14 billion investment would be spread across 14 months.
Legal battles and international backlash
Trump’s announcement comes as his broader tariff agenda faces legal scrutiny. An appeals court recently allowed a case to proceed against some of the administration’s trade levies, although the steel and aluminium tariffs remain unaffected for now.
The US currently imports about a quarter of its steel—much of it from Canada and Mexico—and remains heavily dependent on foreign supply as domestic manufacturing continues to decline. China, the world’s largest steel producer, accounts for over half of global output, followed by India and Japan.
Critics say Trump’s tariff strategy has already destabilized global markets and inflamed tensions with key trading partners. The ongoing trade dispute with China escalated again last week, as Trump accused Beijing of violating a tariff truce negotiated earlier this month in Geneva.
US Trade Representative Jamieson Greer later clarified that China had failed to remove certain non-tariff barriers as agreed. In response, Chinese officials urged the US to “cease discriminatory restrictions.”
Throughout the rally, Trump returned to a common refrain: that steel is essential to national security.
“If you don’t have steel, you don’t have a country,” he said. “You can’t make a military. What are we going to do—go to China to get our steel for the army tanks?”
Despite his tough stance on foreign acquisitions during the 2024 campaign, Trump’s tone appeared more flexible Friday, suggesting the government could work with Nippon Steel if American leadership and oversight are maintained.
