President Donald Trump announced on Friday that he would raise tariffs on steel imports into the United States from 25% to 50%. Speaking at a US Steel plant in West Mifflin, Pennsylvania, Trump called the move a “major announcement” aimed at safeguarding American steelworkers.
“We are going to be imposing a 25% increase,” Trump said. “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.”
Why the Higher Tariff?
Trump explained that while he had considered a 40% tariff, industry leaders pushed for 50%. “At 25% they can sorta get over that fence,” he said. “At 50% nobody’s getting over that fence.”
He later confirmed on his social media platform, Truth Social, that the new tariff rate would take effect on Wednesday, June 4th.
Background on Previous Tariffs and Reactions
Trump first imposed 25% tariffs on steel and aluminum imports on March 12. This sparked retaliation from Canada, backlash from the U.S. auto industry, and a temporary trade dispute with the European Union.
Despite criticism, Trump praised the tariffs for saving the U.S. steel industry, saying American steelmaking would have disappeared without them. He argued that foreign steel would have flooded the market and factories would have closed.
Economic Impact of Tariffs
While tariffs helped boost American steel production, they also raised prices for steel—a crucial material for construction and manufacturing. Spot prices for domestic steel increased after the March tariffs, reducing foreign competition.
A 2023 International Trade Commission report noted that the 2018 steel tariffs under Trump modestly expanded U.S. steel production but also caused higher costs for cars, tools, and machinery, reducing output in those industries by over $3 billion.
Legal Authority and Import Data
Trump used Section 232 of trade law, which allows tariffs on national security grounds, to raise steel tariffs.
In 2024, the U.S. imported $31.3 billion worth of iron and steel, with Canada supplying $7.6 billion of that total.
Trump’s Role in US Steel’s Deal with Nippon Steel
During his speech, Trump also celebrated approving a deal allowing Japan’s Nippon Steel to buy a controlling stake in US Steel. He had initially opposed the sale to a foreign company but was convinced the deal would protect American steelworkers, thanks to a “golden share” that gives the U.S. a say in the company’s operations.
“They kept asking me and I kept rejecting them: No way, no way, no way,” Trump said. “Every time they came in, the deal got better and better and better for the workers.”
He assured workers he would continue monitoring the situation closely.
A Day to Celebrate for American Steelworkers
Trump invited several US Steel workers on stage who praised the tariffs and the deal. He called the day “one of the biggest days in your life” for American steelworkers.