Trump Plans Major Tariff Increase at US Steel Facility Visit
During a rally in Pennsylvania on Friday, former President Donald Trump announced his intention to raise tariffs on imported steel and aluminum from 25% to 50%. This move is aimed at exerting more pressure on global steel manufacturers and escalating his ongoing trade conflict.
"We’re implementing a significant increase of 25%—bringing tariffs on steel imports to 50% in the United States," Trump stated, emphasizing that this would strengthen the domestic steel industry. The announcement was made just outside Pittsburgh, where he highlighted a $14.9 billion agreement between Nippon Steel and US Steel, claiming that such initiatives would preserve jobs for American steelworkers.
Shortly after the rally, Trump took to social media to clarify that the new tariffs would also affect aluminum products and would go into effect on Wednesday.
Following the announcement, shares of Cleveland-Cliffs Inc., a major steel producer, saw a 26% increase in value after markets closed, as investors anticipated an uptick in profits due to the new tariffs.
This decision to double tariffs adds further strain to Trump’s global trade conflict, occurring just hours after he accused China of breaching an agreement aimed at mutually reducing tariffs and trade restrictions on crucial minerals.
In response, Canada’s Chamber of Commerce criticized the hike, calling it "antithetical to North American economic security." Candace Laing, the chamber’s president, expressed concern that disrupting established cross-border supply chains in steel and aluminum would significantly harm both nations.
Australia’s government also condemned the tariff increase, labeling it "unjustified and not the action of a friend." Trade Minister Don Farrell noted that imposing such tariffs causes economic self-harm, negatively impacting consumers and businesses that depend on equitable trade practices.
Trump’s speech took place at US Steel’s Mon Valley Works, a facility emblematic of both the historic strength and decline of American manufacturing, particularly in the Rust Belt. Pennsylvania, a crucial battleground state in presidential elections, also played a pivotal role in Trump’s remarks.
In 2024, the United States ranked as the largest steel importer in the world (excluding the European Union) with 26.2 million tons of imports, according to the Department of Commerce. The new tariffs are expected to raise steel prices nationwide, affecting various industries and consumers.
These steel and aluminum tariffs were among the first actions Trump took upon returning to office in January. The existing 25% tariffs were implemented in March, although Trump had previously considered a 50% levy on Canadian steel before retracting that proposal.
These tariffs, enacted under Section 232 of national security authority, encompass both raw metals and finished products, from stainless steel sinks to aluminum frying pans. The 2024 import value for 289 product categories reached $147.3 billion, with aluminum making up nearly two-thirds and steel one-third, based on data from the Census Bureau.
In contrast, the two previous rounds of tariffs imposed by Trump on Chinese industrial goods in 2018 totaled $50 billion annually.
