On Friday, President Donald Trump informed Pennsylvania steelworkers that he was increasing the tariff on imported steel to 50%. He stated that this significant rise was intended to protect their industry, but it is expected to lead to higher prices for products that use steel, such as homes and cars.

He later announced on his Truth Social platform that aluminum tariffs would also be increased to 50%, stating that both tariff hikes would begin on Wednesday.

Speaking at U.S. Steel's Mon Valley Works–Irvin Plant near Pittsburgh, Trump mentioned an upcoming deal where Japan's Nippon Steel will invest in the well-known American steel company, and he said more details would be provided later.

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

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

Initially, Trump promised to stop the Japanese steelmaker from buying U.S. Steel, which is located in Pittsburgh. However, he later changed his mind and announced an agreement 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 company will be owned. Nippon Steel has not said they will stop trying to buy and control U.S. Steel completely as a subsidiary. This is true even though they offered more money to invest in U.S. Steel plants and promised not to fire workers or close plants, while also trying to get the government to approve the purchase.

At the start of an event at a U.S. Steel warehouse, Trump announced that the agreement was a great success, ensuring the respected American company would continue to be owned by Americans. He then asked, "You will stay an American company, won't you?"

Regarding the tariffs, Trump said that doubling the taxes on imported steel would "further protect the U.S. steel industry." However, such a big increase could cause prices to rise even more.

Government Producer Price Index data indicates that steel prices have risen by 16% since President Trump's inauguration in mid-January.

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

Analysts believe that tariffs, which were first put in place during Trump's time as president, made the domestic steel industry stronger. Nippon Steel wanted to take advantage of this when they offered to buy U.S. Steel.

The United Steelworkers union maintained a skeptical stance.

President David McCall expressed the union's main worry, stating that the merger of U.S. Steel into a foreign company will significantly affect national security, their members, and the communities where they live and work.

Trump emphasized that the agreement would keep the US in charge of the well-known company, which is considered 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 the White House, Trump has been keen to make deals and announce new investments in the U.S. At the same time, he is trying to please the voters who elected him, especially blue-collar workers, because he promised to protect American manufacturing.

Neither U.S. Steel nor Nippon Steel has publicly shared the details of a new agreement with investors, even though Nippon Steel released a statement supporting the proposed "partnership."

State and federal lawmakers who have been informed about the situation describe an agreement where Nippon Steel will buy U.S. Steel and put billions of dollars into U.S. Steel's factories in Pennsylvania, Indiana, Alabama, Arkansas, and Minnesota. The company would be run by a leadership team and board mostly made up of Americans, and the U.S. government would have the power to stop decisions, called a 'golden share,' to protect its interests.

Unionized steelworkers mentioned that opinions were initially divided about Nippon Steel's acquisition, but their views changed as they became more certain that U.S. Steel would eventually close its Pittsburgh-area factories.

Clifford Hammonds, who works as a line feeder at the plant where Trump spoke, said that at the very least, the agreement will help improve the old plant and increase how much it produces.

Hammonds explained that putting money back into the plant was essential for its improvement because its age and poor condition were greatly reducing production. Therefore, significant investment was needed to repair the current machinery.

This issue is very important to Trump, regardless of the exact conditions. Last year, he repeatedly stated he would prevent the deal and foreign ownership of U.S. Steel, and former President Joe Biden said the same.

During his campaign, Trump promised to focus on bringing back American manufacturing if he won a second term. The situation with U.S. Steel, which used to be the world's biggest company, might cause political problems for his Republican Party in the midterm elections, especially in important states like Pennsylvania and other states that rely on industry.

Trump stated on Sunday that he would not approve the deal if U.S. Steel was not owned by Americans. He also insisted that the company's main office must stay in Pittsburgh.

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

He stated, "With the help of dedicated citizens like you, we will make our own metal, use our own energy, secure our future, build our country, and control our own future." He added, "Pennsylvania steel will once again be a very important part of America's foundation, more than ever before."

Recently, Trump and other U.S. 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 somewhere in the U.S.

On Friday, he was joined 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 by supporting Nippon Steel's offer to buy U.S. Steel.

Zugai, whose father had lost his job at a steel mill years before, tried to persuade local officials and members of Congress to back the deal. He believed that if they didn't, U.S. Steel would eventually close its plants in the Pittsburgh area.

In his speech, Zugai told Trump, "I was sure you wouldn't disappoint us," and described Nippon Steel's planned $14 billion investment in U.S. steel production as "very significant."