President Donald Trump told steelworkers in Pennsylvania on Friday that he is doubling the tax on imported steel to 50%. This significant increase is intended to protect their industry, but it could also lead to higher prices for steel, which is used in many products like houses and cars.

Later, on his Truth Social platform, he also announced that aluminum tariffs would be doubled to 50%. He stated that both tariff increases would become effective on Wednesday.

Speaking at U.S. Steel’s Mon Valley Works–Irvin Plant near Pittsburgh, Trump mentioned a future agreement. This deal, whose details are still to be announced, involves Japan's Nippon Steel making a large investment in the well-known American steel company.

Upon his return to Washington, Trump informed reporters that he had yet to endorse the agreement.

"I'm awaiting the final agreement with Nippon for approval, which is currently outstanding. However, their substantial pledge represents a significant investment."

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, however, if the agreement his administration helped arrange is complete, or how the company would be owned. Nippon Steel has always said it intends to fully buy and control U.S. Steel as a completely owned part of its company. This is true even though it offered to invest more money in U.S. Steel factories and promised not to fire workers or shut down plants while trying to get federal approval for the purchase.

Today, we are celebrating a very important agreement that will make sure this well-known American company stays an American company," Trump said when he started an event at one of U.S. Steel's warehouses. "You will remain an American company, won't you?"

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

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

According to the U.S. Commerce Department, in 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). Additionally, the United States produced about three times more steel than it imported last year, with Canada, Brazil, Mexico, and South Korea being the main countries it imported steel from.

Experts believe that tariffs, which were put in place during Trump's first term, helped make 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 continued to harbor reservations.

David McCall, the union's president, expressed significant concerns about how U.S. Steel's potential merger with a foreign company could affect national security, their members' jobs, 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 considered both a political symbol and an important part of the country's supply chain, affecting areas like car manufacturing and national security.

Since returning to the White House, Donald Trump has been keen to make deals and announce new investments in the U.S. He is also trying to please voters, especially blue-collar workers, who voted for him because he promised to protect American manufacturing.

Neither U.S. Steel nor Nippon Steel has shared the details of the updated agreement with investors, even though Nippon Steel publicly supported the idea of a "partnership."

State and federal lawmakers who have been informed about the situation describe an agreement where Nippon will purchase U.S. Steel and invest billions in U.S. Steel's factories in Pennsylvania, Indiana, Alabama, Arkansas, and Minnesota. The company would be managed by a leadership team and board mostly made up of Americans, and the U.S. government would have the power to block decisions, known as a "golden share," to protect its interests.

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

Clifford Hammonds, who works as a line feeder at the factory where Trump spoke, stated that the agreement would, at the very least, help modernize the old plant and boost production.

Hammonds explained that putting money back into the factory is essential to rebuild it, because the plant is old and in disrepair. He added that they are not producing as much as they should be due to its age, and investment is needed to repair the current machinery.

Regardless of the specific conditions, this issue is very important to Trump. Last year, he repeatedly stated that he would prevent the deal and foreign ownership of U.S. Steel, and former President Biden said the same.

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

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 the steelworkers.

He stated that with the support of committed individuals, they would produce their own metal, generate their own energy, protect their future, develop their country, and guide their own destiny, emphasizing that Pennsylvania steel would again be a vital part of America.

Recently, Trump and other U.S. officials have started to promote Nippon Steel's new promise to invest an additional $14 billion, on top of its $14.9 billion offer. This investment includes building a new electric arc furnace steel mill somewhere in the U.S.

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 stance by supporting Nippon Steel's offer to purchase U.S. Steel.

Because his father had lost his job when the steel industry declined, Zugai worked hard to persuade local officials and members of Congress to support the deal. He was sure that if the deal didn't happen, U.S. Steel would eventually close its plants in the Pittsburgh area.

In his speech, Zugai expressed his confidence to Trump, stating, "I knew you wouldn't disappoint us." He also characterized Nippon Steel's intended $14 billion investment in American steel production as something that would significantly improve circumstances.