Washington: U.S. President Donald Trump announced a dramatic hike in tariffs on imported steel and aluminium during a speech to steelworkers in Pennsylvania on Friday, as he also threw his weight behind a fresh deal that would see Japanese giant Nippon Steel take a stake in U.S. Steel.

Speaking at U.S. Steel’s Mon Valley Works–Irvin Plant near Pittsburgh, Trump said steel and aluminium tariffs would double to 50%, in a move he claimed would further protect America’s steel industry. The new tariffs will take effect on Wednesday.

“Doubling the levies on imported steel will even further secure the steel industry in the U.S.,” Trump said. The decision, however, is likely to push prices higher for key manufacturing sectors such as housing and automotive production.

According to the U.S. Commerce Department, domestic steel prices have already climbed 16% since Trump returned to office in January. As of March 2025, steel cost $984 per metric tonne in the U.S., far higher than in Europe ($690) or China ($392).

Trump’s remarks come amid ongoing controversy over the planned acquisition of U.S. Steel by Nippon Steel. Although Trump had previously vowed to block foreign ownership of the iconic American company, he revealed last week that his administration had helped broker a revised agreement under which Nippon would take partial ownership. Specifics of the arrangement remain unclear, and Nippon has not publicly backed away from its original plan to fully acquire U.S. Steel.

“We’re here today to celebrate a blockbuster agreement that will ensure this storied American company stays an American company,” Trump said, reaffirming that U.S. Steel would remain headquartered in Pittsburgh and under U.S. control.

Reports suggest the reworked deal involves Nippon investing an additional $14 billion on top of its $14.9 billion bid, with guarantees to maintain jobs, upgrade facilities and refrain from plant closures. U.S. oversight would be enforced via a so-called “golden share” giving the federal government veto power, and the company would be governed primarily by an American executive board.

While some in the United Steelworkers union remain wary of the foreign involvement, others have begun to warm to the deal, viewing the investment as critical to modernising aging plants and preserving jobs.

Clifford Hammonds, a line feeder at the Mon Valley plant, said: “This place is old, it’s falling apart. We need investment to fix the machines we’ve got. If this deal brings money in to help us produce more, that’s what we need.”

Jason Zugai, vice president of the United Steelworkers local at the Irvin Plant, joined Trump on stage. He had previously defied the international union by supporting Nippon’s bid, arguing it was the only viable path to saving local jobs.

Zugai told Trump, “I knew you wouldn’t let us down,” and described Nippon’s proposed investment as “life-changing”.

Despite the fanfare, the deal remains politically sensitive. Both Trump and his predecessor, Joe Biden, previously opposed the acquisition, citing national security and strategic industry concerns. With Pennsylvania a key battleground state, the future of U.S. Steel could weigh heavily on upcoming midterm elections.

“We are once again going to put Pennsylvania steel into the backbone of America like never before,” Trump said, closing his remarks to loud applause from workers.

Nippon Steel has yet to publish detailed terms of the new arrangement, though it has publicly expressed support for a “partnership” model. For now, the fate of U.S. Steel remains a potent symbol in the fight to revive American manufacturing.