Announcement Made at US Steel Plant
On May 30 (local time), U.S. President Donald Trump announced that he would raise the tariff on imported foreign steel and aluminum products from 25% to 50%.
During a speech at the US Steel plant in Pittsburgh, Pennsylvania, President Trump stated, "This will make the American steel industry even stronger." He added that the previous 25% tariff left loopholes, emphasizing, "There is no way to circumvent this measure (the increase to 50%)."
Previously, on March 12, President Trump had imposed a 25% tariff on foreign steel products based on Section 232 of the Trade Expansion Act. Now, he is moving to double that rate. Although President Trump mentioned only steel during his speech, he later posted on his social media platform, Truth Social, that the tariff increase to 50% would apply to both steel and aluminum. In the post, he wrote, "It is a great honor to raise tariffs on steel and aluminum from 25% to 50%," adding, "This will take effect starting Wednesday, June 4."
This surprise tariff hike announcement came in connection with Nippon Steel's acquisition and investment in US Steel. On May 23, President Trump effectively approved the acquisition, which he had previously blocked citing national security concerns, and previewed his visit and campaign speech at US Steel. However, President Trump only referred to the agreement between the two sides as a "planned partnership," and neither company has clarified what this specifically means.
Beginning his speech, President Trump said, "Today we have gathered to celebrate a 'blockbuster agreement' that will ensure this historic American company (US Steel) remains an American-owned business," and added, "US Steel will keep its headquarters in the great city of Pittsburgh." After announcing the steel tariff hike, he remarked, "The group making this investment decision will be very pleased, because this will prevent anyone from stealing your industry," emphasizing, "At 25%, that barrier could be overcome, but at 50%, it cannot be crossed."
Regarding his shift in position on Nippon Steel's acquisition, President Trump said, "They really want to do something great. They truly want this. And they will invest billions of dollars. You will have management control," adding, "We will all work together, and we will watch this not from Washington, but right here."
He announced that Nippon Steel's investment in the U.S. steel industry would amount to $14 billion (19.4 trillion won), stating, "This is the largest single investment ever and the biggest in the history of American steel," and added, "Pittsburgh will soon once again be recognized as a steel city in the world."
He also said, "Most of this investment will be spent within the next 14 months," and added, "This will create and sustain more than 100,000 jobs in the United States, including 100,000 in Pennsylvania." President Trump further stated, "There will be no layoffs or outsourcing at all, and US Steel workers will soon receive bonuses of up to $5,000."
With President Trump announcing plans to raise steel tariffs to 50%, the outlook for Korean steel exports, which are already suffering under the 25% tariff, is expected to worsen. According to the Korean steel industry and the Korea International Trade Association, the U.S. accounted for about 13% of Korea's total steel exports last year.
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