The White House Watch newsletter offers insights on the implications of Donald Trump’s potential second term for Washington, business, and global affairs.
Donald Trump announced plans to double tariffs on steel imports from 25% to 50% as part of his ongoing global trade strategy. This measure aims to revitalize the U.S. steel industry. The announcement was made during a rally in Pennsylvania, where Trump highlighted a $15 billion partnership between Nippon Steel and U.S. Steel, emphasizing the creation of a tariff “fence” to protect domestic production.
Trump declared the tariff increase would further secure the U.S. steel industry, asserting that a 50% tariff would be an effective barrier against foreign competition. The initial 25% tariff on steel and aluminum, imposed earlier in the year, marked one of the early actions in his trade policy. During his speech, Trump did not address any plans to raise aluminum tariffs.
The announcement comes shortly after a U.S. trade court deemed many of the president’s tariffs illegal, excluding those on specific sectors like steel and aluminum. The inconsistent nature of Trump’s tariff strategy has created uncertainty for businesses and volatility in the markets. Eswar Prasad, an economist at Cornell University, noted the ongoing unpredictability of Trump’s trade policies.
Despite a recent agreement to reduce tariffs with China, tensions resurfaced as Trump accused China of not honoring the deal.
The increase in steel tariffs follows Trump’s endorsement of Nippon Steel’s partnership with U.S. Steel, a move he initially opposed during his campaign. He praised the agreement as a significant partnership that would keep the American company domestically owned. Nippon committed to investing $14 billion in U.S. operations, including over $2 billion to enhance steel production in Pennsylvania and $7 billion for modernization projects across several states.
