President Donald Trump on Friday said he plans to raise tariffs on foreign steel imports from 25% to 50%, a significant escalation in his protectionist trade agenda that risks reigniting tensions with allies and further complicates the pending $14.9 billion acquisition of U.S. Steel by Japan's Nippon Steel. Speaking at a U.S. Steel plant in Pennsylvania, Trump described the move as a necessary step to block foreign competition but did not give final approval for the controversial merger.
"There'll be no layoffs and no outsourcing whatsoever, and every U.S. steel worker will soon receive a well deserved $5,000 bonus," Trump told supporters, describing a potential "partnership" with Nippon Steel. He said the Japanese firm intends to invest over $14 billion in the United States, though he added, "I have to approve the final deal with Nippon and we haven't seen that final deal yet."
The White House has yet to clarify the terms of the transaction or whether it has reached a new agreement with Nippon. The deal has faced sustained political and union resistance since it was announced in 2023. While a revised structure is believed to include a U.S.-based CEO, an American-majority board, and a "golden share" allowing the U.S. government to block certain decisions, labor officials remain skeptical about enforcement mechanisms.
The United Steelworkers union issued a statement Friday saying it "hasn't participated in any discussions with the White House or either company," and remains uninformed about the final terms. Union leaders have previously warned that prior frameworks would allow Nippon to abandon its investment promises without penalty after the deal closes.
The new tariffs, set to take effect June 4, build on the 25% import duties Trump reinstated in March under Section 232 of the Trade Expansion Act. The tariffs will apply broadly to steel and aluminum products, ranging from raw materials to finished goods like sinks, gas ranges, and door hinges. At 25% foreign companies "can sort of get over that fence," Trump said. "At 50% they can no longer get over the fence."
Trump's comments mark the latest in a series of trade escalations since returning to office. In 2024, imports of steel and aluminum products totaled $147.3 billion, according to Census Bureau data retrieved via the U.S. International Trade Commission. Roughly two-thirds of those were aluminum, and one-third steel.
European officials expressed immediate concern. "We strongly regret the announced increase of U.S. tariffs on steel imports from 25% to 50%," a European Commission spokesperson said. "This decision adds further uncertainty to the global economy and increases costs for consumers and businesses on both sides of the Atlantic." The EU warned it was preparing retaliatory measures to take effect as early as July 14.
In Canada, business leaders were also quick to criticize the move. Canadian Chamber of Commerce President and CEO Candace Laing called the tariff hike "antithetical to North American economic security," adding that it would "come at a great cost to both countries."
