May 31st, 2025
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On Friday, President Trump announced to steelworkers in Pennsylvania that he is doubling the tax on imported steel to 50%. This significant increase aims to protect their industry and might lead to higher prices for steel, which is used in making homes, cars, and other products.
He later said on his Truth Social account that taxes on imported aluminum would also increase to 50%. He added that both of these tax increases would begin on Wednesday.
Trump spoke at a U.S. Steel plant near Pittsburgh. He also talked about a future deal where Japan's Nippon Steel will invest in the famous American steel company.
When Trump got back to Washington, he told reporters that he still needed to approve the deal.
I need to approve the final agreement with Nippon, and we haven't seen that yet. But they have made a very big commitment and a very big investment.
Even though Trump first said he would stop the Japanese steel company from buying U.S. Steel, he changed his mind. Last week, he announced a deal for Nippon to own part of the company.
It's still not clear if the agreement his administration helped arrange has been completed, or how the ownership will be set up. Nippon Steel has not said it will stop its plan to fully buy and control U.S. Steel. This is true even though it has offered more money to invest in U.S. Steel factories and promised not to fire workers or close plants while waiting for the government to approve the purchase.
Speaking at a U.S. Steel warehouse, Trump celebrated an important agreement. He said it would make sure the famous American company stays American. He then asked, "You will stay an American company, won't you?"
Trump said that doubling the taxes on imported steel would make the US steel industry safer. However, this big increase could make prices go up even more.
Steel prices have gone up by 16% since President Trump started his term in January, according to government information.
In March 2025, steel in the United States cost $984 per metric ton. This was much more expensive than in Europe ($690) or China ($392), according to the U.S. Commerce Department. Last year, the U.S. made about three times more steel than it imported. The main countries it imported steel from were Canada, Brazil, Mexico, and South Korea.
Experts think that the taxes on imported goods, which started when Trump was first president, have made the American steel industry stronger. Nippon Steel wanted to use this situation to its advantage when it offered to buy U.S. Steel.
The United Steelworkers union continued to have doubts.
Union President David McCall said that they are very concerned about how a foreign company buying U.S. Steel will affect national security, their members, and the communities where they live and work.
Trump emphasized that the agreement would keep the famous company under American control. This company is important for politics, the country's supply chain, industries like car manufacturing, and national security.
Since returning to the White House, Trump has wanted to make deals and announce new investments in the U.S. He is also trying to satisfy voters, especially blue-collar workers, who voted for him because he said he would protect American manufacturing.
Neither U.S. Steel nor Nippon Steel has told investors the details of their new agreement, even though Nippon Steel has said it supports the planned partnership.
State and federal lawmakers who know about the situation say that Nippon will buy U.S. Steel. They will also invest billions of dollars in U.S. Steel's factories in Pennsylvania, Indiana, Alabama, Arkansas, and Minnesota. The company will be run by mostly American leaders and a board, and the U.S. government will have the power to stop important decisions.
Unionized steelworkers said their opinions were divided about Nippon Steel's purchase. However, their feelings changed over time because they became more certain that U.S. Steel would eventually close its factories in the Pittsburgh area.
Clifford Hammonds, who works on the production line at the factory where Trump spoke, said that the deal will at least help make the old factory better and produce more.
Hammonds said, "We are putting money back into the factory to help rebuild it because it is old and breaking down. We are not producing as much as we should be because, as I said, this place is old. It's falling apart. We need some investment to fix the machines we have."
This issue is very important to Trump. Last year, he often said he would stop the deal and prevent foreign companies from owning U.S. Steel. Former President Biden also agreed with this.
During his campaign, Trump promised to focus on making American manufacturing strong again if he won a second term. The future of U.S. Steel, which used to be a very big company, could cause political problems for the Republican Party in Pennsylvania and other important states that depend on industrial jobs, especially during the upcoming elections.
Trump said on Sunday that he would not approve the deal unless U.S. Steel stayed under American control. He also said that the company would keep its main office in Pittsburgh.
The president concluded his address on Friday by expressing gratitude to the steelworkers.
He said, "With the help of supportive people like you, we will make our own metal, create our own energy, and make our future safe. We will build our country and decide our own future." He added, "We are going to use Pennsylvania steel to strengthen America again, more than ever before."
Recently, Trump and other US officials have been talking about Nippon Steel's plan to invest an additional $14 billion, on top of their $14.9 billion offer. This investment includes building a new steel factory in the US that uses electric arc furnace technology.
On Friday, several U.S. Steel workers were on stage with him, including Jason Zugai. He is a vice president at the local United Steelworkers union at the Irvin plant. This local union decided to support Nippon Steel's offer to buy U.S. Steel, even though the main international union disagreed.
Zugai's father had lost his job at a steel factory many years earlier. So, Zugai spoke with local politicians and members of Congress to get their support for the deal. He thought that if the deal didn't happen, U.S. Steel would eventually close its factories near Pittsburgh.
Zugai told Trump that he believed Trump would support them, and he said that Nippon Steel's plan to invest $14 billion in US steel production would be a "life-changing" opportunity.
May 31st, 2025
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