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

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

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

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 promise and it's a very large investment, he mentioned.

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

It's still not clear if the agreement, which his administration helped arrange, is complete or how the ownership will be set up. Nippon Steel has not withdrawn its offer to fully buy and control U.S. Steel as a subsidiary. This is true even though they have promised to invest more money in U.S. Steel plants and guaranteed that they will not fire workers or close plants, while they are trying to get the government's approval for the purchase.

At the start of an event at a U.S. Steel warehouse, Trump praised an important agreement, stating that it would definitely keep the well-known company American-owned. He then asked, "You will stay an American company, won't you?"

Regarding the tariffs, Trump stated that doubling the taxes on imported steel would "further protect the U.S. steel industry," but such a significant increase could lead to higher prices.

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) and China ($392). 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 it imported steel.

Analysts believe that tariffs from Trump's first term strengthened the steel industry in the US, which Nippon Steel aimed to use to its advantage when offering to buy U.S. Steel.

The United Steelworkers union maintained a skeptical stance.

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

Trump emphasized that the agreement would keep the well-known company under American control. This company is considered both a political symbol and an important issue for the country's supply chain, including 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. This is also an attempt to please voters, especially blue-collar workers, who elected him because he promised to protect U.S. manufacturing.

Although Nippon Steel has expressed approval for the potential "partnership," neither company has publicly shared the specific details of the updated agreement with investors.

State and federal lawmakers who know about the situation are talking about a deal where Nippon Steel will buy U.S. Steel. As part of this agreement, Nippon will invest a lot of money to improve U.S. Steel's factories in Pennsylvania, Indiana, Alabama, Arkansas, and Minnesota. Also, the company's management and board will mostly consist of Americans, and the U.S. government will have the power to stop important decisions with a special 'golden share' to protect its interests.

Initially, unionized steelworkers were divided about Nippon Steel's acquisition, but their opinions have changed over time as they became more convinced that U.S. Steel would eventually close its Pittsburgh-area plants.

Clifford Hammonds, a line feeder at the factory where Trump delivered his speech, suggested that, at a minimum, the agreement would facilitate upgrades to the outdated plant and boost production capacity.

Hammonds explained that they need to invest money back into the factory to repair it, as its old and deteriorating state is preventing them from producing enough. He emphasized that financial investment is crucial to fix the current machinery.

This issue is extremely important to Trump, who last year repeatedly stated his intention to prevent the deal and foreign ownership of U.S. Steel. Former President Biden also expressed the same view.

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

Trump stated on Sunday that he would not approve the deal unless U.S. Steel stayed under American control, adding that its headquarters needed to remain in Pittsburgh.

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

He stated that with the help of dedicated citizens, the country would produce its own metal, generate its own energy, and secure its future. This would allow them to build a strong nation and control their own future. He also declared that Pennsylvania steel would once again be a fundamental part of America's infrastructure, more than ever before.

Recently, Trump and other U.S. officials have started to highlight Nippon Steel's new promise to invest an additional $14 billion, on top of their $14.9 billion offer. This 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, convinced local officials and members of Congress to support the deal, because he believed that U.S. Steel would eventually close its Pittsburgh-area plants if the agreement wasn't made.

During his speech, Zugai told Trump, "I knew you wouldn't disappoint us," and said that Nippon Steel's planned $14 billion investment in U.S. steel production would be a "very important" development.