In a bold move at a US Steel facility in Pennsylvania, former President Donald Trump declared a steel tariff hike to 50%, doubling the current rate. Trump said the decision would protect American steelworkers and prevent foreign steel from undermining domestic production.
The announcement marks another sharp turn in his long-standing protectionist policies. The new tariffs will take effect on June 4. Additionally, Trump disclosed that he had changed his mind and approved the contentious Nippon Steel purchase of US Steel. The decision drew applause from steelworkers present at the event.
Trump Imposes New Tariffs to Shield US Workers
The steel tariff hike was framed as a “major announcement” aimed at reviving the struggling steel industry. Furthermore, Trump claimed that raising tariffs from 25% to 50% would create a significant barrier to international steel imports. He explained that previous tariffs were not high enough to stop competition. “At 25%, they can sorta get over that fence,” Trump said. “At 50%, nobody’s getting over that fence.”
However, Trump had earlier implemented 25% tariffs on steel and aluminum in March 2025 under Section 232 of trade law. This move, designed around national security concerns, sparked backlash from Canada and the European Union. Nonetheless, the US auto industry criticized the ruling. However, Trump said that the previous tariffs were beneficial to American mills. He claimed the steel industry would have vanished without them.
Steel Tariff Hike Followed by Shock Deal Approval
On Truth Social, Trump shared the news of the steel tariff hike, describing it as a “BIG jolt” for steelworkers. “It is my great honor to raise the tariffs on steel and aluminum from 25% to 50%, effective Wednesday, June 4th,” he wrote. He added, “Our steel and aluminum industries are coming back like never before.” His post sparked discussion among industry analysts and online users.
He also surprised many by approving Nippon Steel’s takeover of US Steel. During his campaign, he had strongly opposed foreign ownership of strategic industries. President Biden also blocked the deal earlier, citing national security. However, Trump claimed that the deal got better over time. He credited a “golden share” clause, giving the US partial control over corporate decisions, as the key reason for his reversal.
“Every time they came in, the deal got better for workers,” Trump said. The crowd applauded as he claimed the final agreement protected American jobs. He reiterated his commitment to “watching over” the steel industry from Washington if re-elected. Additionally, Trump highlighted the emotional connection between his policy decisions and workers by inviting them to speak on stage.
Ripple Effects from Steel Tariff Hike Begin
While Trump’s steel tariff hike may protect domestic mills, experts caution about rising steel costs. However, Trump promised to support industries like construction and auto manufacturing, which could be negatively impacted by higher prices. In fact, by 2021, steel-consuming companies’ output had decreased by $3 billion as a result of previous tariffs in 2018.
Last year, the United States imported $31.3 billion worth of iron and steel, with Canada being the biggest supplier. According to analysts, retaliation and strained trade relations could result from the new Trump tariffs. However, Trump’s team argues that the US must reduce its reliance on foreign steel to remain secure and competitive.
Trump indicated a renewed emphasis on industrial protectionism with these actions. The acquisition of Nippon and the Trump tariffs have the potential to change the structure of the global steel industry. Although workers applauded the news, trade partners and economists are keeping a close eye on it. Therefore, it’s unclear if this leads to more widespread economic suffering or long-term benefits.
What Does This Mean Long Term?
This steel tariff hike may go down as one of Trump’s most defining economic moves in 2025. Despite worker praise, it poses important questions regarding costs, international relations, and free trade. Therefore, as elections draw near, Trump’s steel wager is probably going to remain a hot topic in economics.
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