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In a fiery speech to steelworkers at U.S. Steel’s Irvin Works plant on Friday, President Donald Trump announced a doubling of tariffs on steel imports to 50%, up from the current 25%, as part of his broader push to fortify American manufacturing and revive the domestic steel industry.
“We’re going to bring it from 25% to 50%,” Trump said to cheers from the crowd. “We are protecting American steel with American strength.”
The announcement came as Trump attempted to reassure workers about a controversial deal involving Japan’s Nippon Steel and U.S. Steel, one of the nation’s oldest industrial icons. Trump described the transaction as a “partnership,” not a takeover, though filings and statements from the companies suggest otherwise.
The “Partnership” or a Full Merger?
In a May 23 post on his Truth Social platform, Trump claimed that U.S. Steel would remain headquartered in Pittsburgh and that Nippon would invest $14 billion over 14 months into the American firm. He emphasized that the U.S. would “control” the company and reiterated on Sunday that the arrangement is “an investment, a partial ownership.”
Yet U.S. Steel’s own filings with the Securities and Exchange Commission say otherwise. According to its April 8 filing, the company is set to become a “wholly owned subsidiary” of Nippon Steel North America, a framing that sounds far more like an acquisition than a joint venture.
Sources close to the deal told CNBC the $55-per-share buyout offer from Nippon — initially rejected by President Biden in January on national security grounds — is still on the table. Trump reversed that decision in April, ordering a new national security review.
What Is the “Golden Share”?
Sen. Dave McCormick (R-PA) said this week that the U.S. government will hold a “golden share”, giving it the contractual right to approve key board members and decisions. McCormick added that U.S. Steel will have an American CEO and a majority-U.S. board, suggesting the government would retain indirect control over strategic decisions.
Legal experts said this structure would not involve equity ownership, but rather contractual safeguards, similar to previous CFIUS (Committee on Foreign Investment in the U.S.) arrangements that mitigate national security concerns without blocking deals.
“The U.S. will have oversight, not ownership,” said James Brower, a CFIUS expert with Morrison Forrester.
Unions Still Skeptical
The United Steelworkers union, which originally opposed the Nippon deal, said they are still reviewing Trump’s announcement and awaiting more details.
“Our concern remains that Nippon, a foreign corporation with a long and proven track record of violating our trade laws, will further erode domestic steelmaking capacity and jeopardize thousands of good, union jobs,” said USW President David McCall.
Broader Economic and Political Impact
The tariff increase and the reopening of the Nippon deal mark a dramatic shift in Trump’s industrial strategy, and could have significant ripple effects:
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Steel prices may rise, which could affect sectors from construction to auto manufacturing.
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The deal’s opacity has raised bipartisan concerns about foreign influence over critical infrastructure.
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Trump’s move to double tariffs may draw legal challenges from trading partners or industry groups.
Still, the administration has maintained that protecting “critical sectors” like steel justifies extraordinary measures.
“Whether it’s basic manufacturing or high tech, the U.S. has to maintain control of things that matter,” said U.S. Trade Representative Jamieson Greer on CNBC.
