Trump Doubles Steel Tariffs to 50% Amid Nippon Deal

President Donald Trump has reignited his tough stance on trade by doubling U.S. steel tariffs from 25% to 50% during a rally-style speech at U.S. Steel’s Mon Valley Works in Pennsylvania. The decision is part of his larger strategy to bolster American manufacturing and reduce reliance on foreign materials.

Trump’s move came alongside a significant announcement: a tentative $14 billion investment deal with Japan’s Nippon Steel. Under this agreement, Nippon Steel would be allowed to acquire U.S. Steel, but with conditions ensuring no job losses or plant closures. The plan includes American-led board control and a special “golden share” that gives the U.S. veto rights on major decisions.

While domestic producers celebrate the increase in tariffs, critics warn it could lead to increased production costs and consumer prices. Trump’s 2025 re-election campaign is leaning into protectionist economic policies that appeal to industrial workers.

This isn’t the first time Trump has taken such a stance. Back in 2018, he imposed steep tariffs on steel and aluminum, triggering trade tensions with allies and rivals alike. The long-term impact of those measures is still debated, but this new step signals an even more aggressive phase.

Experts say this new tariff hike could have ripple effects across global markets. Countries that export steel to the U.S. may retaliate with tariffs of their own, further intensifying global trade tensions. Meanwhile, American construction and automotive companies may face higher input costs, potentially passing them onto consumers.