US President Donald Trump will raise tariffs on steel and aluminium imports from 25 percent to 50 percent starting Wednesday. He said the move aims to better protect the US steel industry.
At a rally in Pennsylvania on Friday, Trump said the original 25 percent tariff had a loophole. He claimed the higher rate would close that gap and make it harder to avoid.
His announcement follows reports that he may approve a merger between US Steel and Japan’s Nippon Steel. Trump referred to it as a “planned partnership” and called it a “blockbuster agreement”.
He assured Americans that US Steel will stay American-owned and keep its headquarters in Pittsburgh.
Trump also said he initially opposed the deal over national security concerns, just like former President Joe Biden. However, he later changed his mind after seeing Japan’s strong interest in investing in the US. He noted that Nippon Steel plans to invest $14 billion.
The increased tariffs are likely to hurt South Korea’s steel exports. Last year, shipments to the US made up about 13 percent of its total steel exports.
