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Released June 03, 2025 | SUGAR LAND
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Researched by Industrial Info Resources (Sugar Land, Texas)--U.S. President Donald Trump was at a United States Steel Corporation (U.S. Steel) (Pittsburgh, Pennsylvania) plant in West Mifflin, Pennsylvania, on Friday to celebrate what has been described at different times as a merger, acquisition, partnership and partial ownership of U.S. Steel by Japan's Nippon Steel Corporation (Tokyo). At the rally, Trump had some news for the workers gathered there: Tariffs on imported steel are going up again, this time rising from 25% to 50%.
"We are going to be imposing a 25% increase. We're going to bring it from 25% to 50%, the tariffs on steel into the United States of America, which will even further secure the steel industry in the United States," Trump said during his remarks at the plant. In a Truth Social post later that evening, Trump said the new tariff rate would take effect Wednesday, June 4, and also would apply to aluminum. "This will be yet another BIG jolt of great news for our wonderful steel and aluminum workers," he declared in the post.
News of the increased tariffs caused aluminum and steel prices to jump in the U.S. on Monday. The premium for buying aluminum on the physical market jumped 54%, while hot-rolled coil steel climbed 7.4%. Meanwhile, the European Union is preparing countermeasures, and the United Steelworkers criticized the move as potentially detrimental for Canada's steel sector. Marty Warren, United Steelworkers (USW) National Director for Canada, said in a statement issued by the USW, "A 50% tariff would completely shut us out of the U.S. market. This isn't trade policy--it's a direct attack on Canadian industries and workers. Thousands of Canadian jobs are on the line and communities that rely on steel and aluminum are being put at risk. Canada needs to respond immediately and decisively to defend workers."
The USW statement continued on behalf of the organization: "With no exemption for Canada, these measures severely further disrupt integrated North American supply chains and threaten tens of thousands of good union jobs, both directly and indirectly, in sectors like manufacturing, auto, defense, aerospace, and construction. Canada is the United States' largest supplier of steel and aluminum."
The American Primary Aluminum Association (APAA) was supportive of the increased tariff on aluminum. "We applaud President Trump's historic announcement that he will impose a 50% tariff to stop the flood of foreign aluminum imports," remarked Mark Duffy, president of the APAA. "For decades, subsidized foreign producers have hollowed out domestic aluminum manufacturing. Under President Donald J. Trump, we finally have a strong leader who is fighting to rebuild domestic manufacturing and protect thousands of American aluminum jobs." The U.S. produces little primary aluminum as it is a very energy-intensive process. Most primary aluminum used in the U.S. is produced in Canada, where abundant hydropower resources help minimize power costs.
Canada also is the top supplier of imported steel to the U.S., shipping 6.6 million tons to U.S. buyers last year, according to the American Iron and Steel Institute. Brazil, Mexico, South Korea and Vietnam round out the top five import sources.
Details regarding any potential exemptions, such as the Trump administration's reduced tariffs on steel and aluminum imports from the U.K., had not been disclosed as of Monday morning.
Trump's ultimate goal for the tariffs--increased U.S. steel and aluminum production--could take years to achieve. South Korea's Hyundai Steel Company Limited (Incheon) announced in April that it would invest more than $6 billion in a steel mill in Louisiana, but the plant would not begin production until the close of the decade. Subscribers to Industrial Info's Global Market Intelligence (GMI) Metals & Minerals Project Database can learn more by viewing the project report. Similarly, last month Emirates Global Aluminium (Abu Dhabi, United Arab Emirates) announced plans to invest $4 billion in a new Oklahoma plant. Details on that project remain forthcoming, but the company has said production would begin by 2030.
Trump certainly doesn't balk at the idea of direct foreign investment in the U.S. Friday's announcement of increased tariffs was also a rally in support of an acquisition of U.S. Steel by Nippon Steel. During his presidential campaign, Trump condemned Nippon's potential buying of the iconic U.S. company, but as with multiple other matters affecting trade, subsequently changed his mind, ordering a new review of the proposed acquisition in April. Former President Joe Biden had blocked the deal on national security grounds.
However, exactly what this new deal between Nippon and U.S. Steel actually consists of remains sketchy. Trump didn't elaborate on details at the rally, but in a May 23 social media post after clearing the deal, he described the move as a "partnership," saying Nippon would invest $14 billion in the U.S. over the next 14 months and later telling reporters that the deal is an "investment, it's a partial ownership, but it will be controlled by the USA."
In a CBNC interview, Pennsylvania Senator Dave McCormick (R) said, "There'll be a golden share that will essentially require U.S. government approval of a number of the board members and that will allow the United States to ensure production levels aren't cut." McCormick added that $2.4 billion of the $14 billion would go toward U.S. Steel's mill in Mon Valley, outside Pittsburgh.
After Trump's Friday remarks, USW International President David McCall issued the following statement: "We have not participated in the discussions involving U.S. Steel, Nippon Steel, and the Trump administration, nor were we consulted, so we cannot speculate about the meaning of the 'planned partnership' between [U.S. Steel] and Nippon or the 'golden share' that some politicians have claimed will be issued to the federal government. Whatever the deal structure, our primary concern remains with the impact that this merger of U.S. Steel into a foreign competitor will have on national security, our members and the communities where we live and work."
McCall also expressed reservations about Nippon specifically: "Nippon has a long history of committing unfair trade practices. Indeed, the International Trade Commission determined that the company violated U.S. trade laws in 13 different trade cases. Just last month, the Department of Commerce imposed duties of more than 200% on Nippon for the illegal dumping of steel. Yet, despite ongoing injury and continuing penalties, Nippon is being rewarded."
However, not all USW members are in line with McCall's outlook on the transaction. At the Pennsylvania rally, Trump invited local USW members on stage to support the Nippon-U.S. Steel deal, including Jason Zugai, vice-president of Irvin local 2227, who said he believed the investments would be "life-changing."
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 trillion (USD).
"We are going to be imposing a 25% increase. We're going to bring it from 25% to 50%, the tariffs on steel into the United States of America, which will even further secure the steel industry in the United States," Trump said during his remarks at the plant. In a Truth Social post later that evening, Trump said the new tariff rate would take effect Wednesday, June 4, and also would apply to aluminum. "This will be yet another BIG jolt of great news for our wonderful steel and aluminum workers," he declared in the post.
News of the increased tariffs caused aluminum and steel prices to jump in the U.S. on Monday. The premium for buying aluminum on the physical market jumped 54%, while hot-rolled coil steel climbed 7.4%. Meanwhile, the European Union is preparing countermeasures, and the United Steelworkers criticized the move as potentially detrimental for Canada's steel sector. Marty Warren, United Steelworkers (USW) National Director for Canada, said in a statement issued by the USW, "A 50% tariff would completely shut us out of the U.S. market. This isn't trade policy--it's a direct attack on Canadian industries and workers. Thousands of Canadian jobs are on the line and communities that rely on steel and aluminum are being put at risk. Canada needs to respond immediately and decisively to defend workers."
The USW statement continued on behalf of the organization: "With no exemption for Canada, these measures severely further disrupt integrated North American supply chains and threaten tens of thousands of good union jobs, both directly and indirectly, in sectors like manufacturing, auto, defense, aerospace, and construction. Canada is the United States' largest supplier of steel and aluminum."
The American Primary Aluminum Association (APAA) was supportive of the increased tariff on aluminum. "We applaud President Trump's historic announcement that he will impose a 50% tariff to stop the flood of foreign aluminum imports," remarked Mark Duffy, president of the APAA. "For decades, subsidized foreign producers have hollowed out domestic aluminum manufacturing. Under President Donald J. Trump, we finally have a strong leader who is fighting to rebuild domestic manufacturing and protect thousands of American aluminum jobs." The U.S. produces little primary aluminum as it is a very energy-intensive process. Most primary aluminum used in the U.S. is produced in Canada, where abundant hydropower resources help minimize power costs.
Canada also is the top supplier of imported steel to the U.S., shipping 6.6 million tons to U.S. buyers last year, according to the American Iron and Steel Institute. Brazil, Mexico, South Korea and Vietnam round out the top five import sources.
Details regarding any potential exemptions, such as the Trump administration's reduced tariffs on steel and aluminum imports from the U.K., had not been disclosed as of Monday morning.
Trump's ultimate goal for the tariffs--increased U.S. steel and aluminum production--could take years to achieve. South Korea's Hyundai Steel Company Limited (Incheon) announced in April that it would invest more than $6 billion in a steel mill in Louisiana, but the plant would not begin production until the close of the decade. Subscribers to Industrial Info's Global Market Intelligence (GMI) Metals & Minerals Project Database can learn more by viewing the project report. Similarly, last month Emirates Global Aluminium (Abu Dhabi, United Arab Emirates) announced plans to invest $4 billion in a new Oklahoma plant. Details on that project remain forthcoming, but the company has said production would begin by 2030.
Trump certainly doesn't balk at the idea of direct foreign investment in the U.S. Friday's announcement of increased tariffs was also a rally in support of an acquisition of U.S. Steel by Nippon Steel. During his presidential campaign, Trump condemned Nippon's potential buying of the iconic U.S. company, but as with multiple other matters affecting trade, subsequently changed his mind, ordering a new review of the proposed acquisition in April. Former President Joe Biden had blocked the deal on national security grounds.
However, exactly what this new deal between Nippon and U.S. Steel actually consists of remains sketchy. Trump didn't elaborate on details at the rally, but in a May 23 social media post after clearing the deal, he described the move as a "partnership," saying Nippon would invest $14 billion in the U.S. over the next 14 months and later telling reporters that the deal is an "investment, it's a partial ownership, but it will be controlled by the USA."
In a CBNC interview, Pennsylvania Senator Dave McCormick (R) said, "There'll be a golden share that will essentially require U.S. government approval of a number of the board members and that will allow the United States to ensure production levels aren't cut." McCormick added that $2.4 billion of the $14 billion would go toward U.S. Steel's mill in Mon Valley, outside Pittsburgh.
After Trump's Friday remarks, USW International President David McCall issued the following statement: "We have not participated in the discussions involving U.S. Steel, Nippon Steel, and the Trump administration, nor were we consulted, so we cannot speculate about the meaning of the 'planned partnership' between [U.S. Steel] and Nippon or the 'golden share' that some politicians have claimed will be issued to the federal government. Whatever the deal structure, our primary concern remains with the impact that this merger of U.S. Steel into a foreign competitor will have on national security, our members and the communities where we live and work."
McCall also expressed reservations about Nippon specifically: "Nippon has a long history of committing unfair trade practices. Indeed, the International Trade Commission determined that the company violated U.S. trade laws in 13 different trade cases. Just last month, the Department of Commerce imposed duties of more than 200% on Nippon for the illegal dumping of steel. Yet, despite ongoing injury and continuing penalties, Nippon is being rewarded."
However, not all USW members are in line with McCall's outlook on the transaction. At the Pennsylvania rally, Trump invited local USW members on stage to support the Nippon-U.S. Steel deal, including Jason Zugai, vice-president of Irvin local 2227, who said he believed the investments would be "life-changing."
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 trillion (USD).
