US President Donald Trump has announced a significant increase in steel tariffs to 50%, targeting imports from around the world, including Japan’s Nippon Steel. The move comes after signaling last week that he would clear the controversial merger between US Steel and Nippon.
The deal was initially met with skepticism by labor unions, but Trump has promised to protect American jobs. He stated that U.S. Steel will remain a wholly owned subsidiary of Nippon’s North America arm, with its headquarters in Pittsburgh remaining unchanged. The deal also includes a $5,000 bonus for US Steel workers and a commitment from Nippon to keep blast furnaces operating at full capacity.
However, Trump has faced criticism for his handling of the deal, which was initially rejected by President Joe Biden on national security grounds due to concerns about critical supply chains being compromised. The U.S. government will now have a “golden share” allowing it to decide on several board seats, ensuring US control over key sectors such as manufacturing and high-tech industries.
Industry experts say that the deal is an investment, with Nippon expected to close its acquisition at $55 per share. However, some remain concerned about the impact of foreign companies acquiring American businesses, fearing it could erode domestic steelmaking capacity and threaten thousands of union jobs.
Trump’s announcement on the tariffs has sparked mixed reactions from lawmakers and industry stakeholders. The United Steelworkers have expressed caution, saying they cannot speculate about the deal without more information.
Source: https://www.cnbc.com/2025/05/30/trump-rally-us-steel-nippon-deal.html