On Friday, President Donald Trump announced a significant increase in tariffs on steel imports, raising the rate from 25% to 50% in a move intended to bolster the domestic steel industry and protect American steelworkers.
Speaking at a U.S. Steel facility in West Mifflin, Pennsylvania, President Trump addressed a crowd of employees, declaring that the increased tariffs would serve to “further secure the steel industry in the United States.” He emphasized that the higher rate would effectively prevent circumvention by foreign competitors. “We are going to be imposing a 25% increase,” he said. “We’re going to bring it from 25% to 50%, the tariffs on steel into the United States of America. Nobody’s going to get around that.”
According to the President, he had initially considered setting the tariff at 40%, but was encouraged by industry leaders to take more aggressive action. “At 25% they can sorta get over that fence,” Trump remarked. “At 50% nobody’s getting over that fence.”
This latest move builds upon the administration’s initial imposition of tariffs on March 12, which levied a 25% tax on all steel imports and a 10% duty on aluminum. That earlier decision prompted retaliatory tariffs from countries such as Canada and threats of countermeasures from the European Union, which were later rescinded.
President Trump credited the original tariffs with revitalizing the U.S. steel industry, asserting that without them, “all steel would have been foreign-made and factories would have closed.”
Economic Analysts Warn of Price Increases
Despite the administration’s objectives, economic analysts have expressed concern that the higher tariffs could lead to increased prices for steel, a material vital to the construction and manufacturing sectors—both of which the President has pledged to strengthen. Since the initial tariffs were implemented, domestic steel prices have risen, as foreign competition has been significantly curtailed.
A 2023 report from the U.S. International Trade Commission reviewed the impact of the 2018 steel tariffs, noting that while U.S. steel production increased, the costs of automobiles, industrial tools, and machinery also rose. These higher costs, the report found, led to a reduction of over $3 billion in output across affected industries by 2021.
President Trump is utilizing Section 232 of the Trade Expansion Act, which grants the executive authority to impose tariffs on imports that pose a potential threat to national security. In 2024, the United States imported approximately $31.3 billion in iron and steel, with Canada being the largest supplier at $7.6 billion, according to data from the Department of Commerce.
Remarks on U.S. Steel Acquisition
During his remarks, President Trump also addressed the proposed acquisition of U.S. Steel by Japan’s Nippon Steel. Although he had previously opposed the deal during his 2024 campaign—concerns echoed by President Joe Biden, who blocked the transaction on national security grounds—Trump stated that he was later persuaded by improved terms.
“U.S. Steel was being sold into foreign hands with no protections for our great steel workers,” Trump said. “And I said there’s no way we’re gonna let that happen. I was watching over you.”
He noted that continued negotiations led to progressively better conditions for American workers, eventually including the introduction of a “golden share,” which grants the U.S. government a degree of oversight in the company’s decision-making.
“I’m going to be in Washington; I’m gonna be watching over it,” the President assured the audience.
