On Friday, President Donald Trump informed Pennsylvania steelworkers that he is increasing the tariff on imported steel to 50%. This significant rise is intended to protect their industry, but it could also lead to higher prices for steel, which is widely used in making homes, cars, and other products.

Later, in a post on his Truth Social platform, he also stated that aluminum tariffs would be doubled to 50%. He added that both tariff increases would begin on Wednesday.

Speaking at U.S. Steel's Mon Valley Works-Irvin Plant near Pittsburgh, Trump mentioned an upcoming deal. This agreement would involve Japan's Nippon Steel investing in the well-known American steel company, but the specific details have not yet been revealed.

Upon his return to Washington, Trump informed reporters that the final approval of the deal remained contingent on his decision.

I need to approve the final agreement with Nippon, and we haven't seen that final agreement yet. However, they have made a very significant commitment and a very large investment.

Although Trump first promised to stop the Japanese steelmaker from buying U.S. Steel, which is based in Pittsburgh, he changed his mind and announced a deal last week for Nippon to have "partial ownership."

It's still not clear if the agreement his administration helped arrange is complete, or how the ownership will be set up. Nippon Steel has always said it wants to fully buy and control U.S. Steel as a subsidiary. This is true even though it has promised to invest more money in U.S. Steel factories and guaranteed it wouldn't fire workers or shut down plants, while trying to get federal approval for the purchase.

Speaking at a U.S. Steel building, Trump announced that the agreement was a very important success, making sure the well-known company would continue to be owned and run by Americans. He then asked, "You will stay an American company, won't you?"

Regarding the tariffs, Trump stated that increasing taxes on imported steel by two times would "make the U.S. steel industry even stronger," but such a large increase could make prices go up a lot.

According to the government's Producer Price Index, steel prices have increased by 16% since Trump became president in mid-January.

According to the U.S. Commerce Department, by March 2025, steel in the United States cost $984 per metric ton, which was much higher than the prices in Europe ($690) or China ($392). Last year, the United States produced about three times more steel than it imported, and the main countries it imported steel from were Canada, Brazil, Mexico, and South Korea.

Analysts have said that the tariffs from Trump's first term helped make the steel industry in the country stronger, and Nippon Steel wanted to use this to its advantage when it offered to buy U.S. Steel.

The United Steelworkers union maintained a profound skepticism.

David McCall, the president, stated that the union's main worry is how the merger of U.S. Steel with a foreign company will affect national security, their members, and the communities where they live and work.

Trump emphasized that the agreement would keep America in charge of the well-known company, which is viewed as both a political symbol and an important part of the country's supply chain, affecting industries like car manufacturing and national security.

Since returning to office, Trump, who is keen to make deals and announce new investments in the U.S., is also trying to please his voters, especially blue-collar workers who elected him because he promised to protect American manufacturing.

Even though Nippon Steel has said it supports the planned "partnership," neither company has openly shared the details of a changed agreement with investors.

State and federal lawmakers who have been informed about the situation describe an agreement where Nippon will acquire U.S. Steel and invest billions of dollars into U.S. Steel's facilities in Pennsylvania, Indiana, Alabama, Arkansas, and Minnesota. The company would be managed by a leadership team and board primarily composed of Americans, and the U.S. government would retain veto power over key decisions through a 'golden share'.

Unionized steelworkers admitted there was some disagreement among them about Nippon Steel's acquisition, but they said their feelings had changed over time. They became more convinced that U.S. Steel would eventually close its Pittsburgh-area factories.

Clifford Hammonds, who works as a line feeder at the factory where Trump gave his speech, stated that the agreement would at least help improve the old factory and increase how much it can produce.

Hammonds explained that investing money back into the plant was crucial for its restoration, as its age and poor condition were hindering production. Therefore, financial investment was needed to repair the existing machinery.

This issue is extremely important to Trump, who last year frequently stated he would prevent the deal and foreign companies from owning U.S. Steel. Former President Joe Biden also expressed the same view.

During his campaign, Trump promised to focus on bringing back American manufacturing in his second term. The situation with U.S. Steel, which used to be the world's biggest company, might become a political problem for the Republican Party in the midterm elections, especially in Pennsylvania and other important states that depend on industrial manufacturing.

Trump stated on Sunday that he would not approve the deal unless U.S. Steel stayed under American control, adding that the company's headquarters must remain in Pittsburgh.

The president concluded his address on Friday with an expression of gratitude towards steelworkers.

He stated, "With the support of individuals like you, we will produce our own metal, generate our own energy, safeguard our future, construct our nation, and determine our own direction." He further added, "We will once again ensure that Pennsylvania steel becomes a fundamental component of America's strength, to an unprecedented degree."

Recently, Trump and other US officials have been promoting Nippon Steel's new promise to invest an additional $14 billion, on top of their $14.9 billion offer. This investment includes building a new electric arc furnace steel mill in the US.

On Friday, he was accompanied on stage by several U.S. Steel workers, including Jason Zugai, who is the vice president of the local United Steelworkers union at the Irvin finishing plant. This local union went against the international union's position by supporting Nippon Steel's offer to purchase U.S. Steel.

Zugai, whose father had lost his job at a steel mill some years earlier, worked hard to persuade local officials and members of Congress to support the agreement. He was convinced that U.S. Steel would eventually close its Pittsburgh-area plants if they did not.

In his speech, Zugai told Trump, "I knew you wouldn't let us down." He also said that Nippon Steel's plan to invest $14 billion in U.S. steel production would significantly improve people's lives.